| IMPACT! Cement firms blink, scrips crash |
| BS Research Bureau / Mumbai March 9, 2007 |
| The decision by cement companies to check prices for at least a year and absorb all input costs and levies has caused panic in the cement counters on Dalal Street. Cement stocks have declined around 5-10% with all major and minor stocks quoted at their three-month lows. The Business Standard Cement Index has declined over 35% in the last one month when compared with the 14% decline in Sensex. The government is keeping a close watch on cement prices in its bid to rein in inflation, and had abolished the 12.5% import duty on cement in late January 2007. Cement producers had raised prices by Rs 10-12 per bag in some markets to pass on the hike in excise duty announced in Budget 2007 for retail prices above Rs 190 per bag. Excise duty, however, was cut to Rs 350 per tonne in the budget for retail prices up to Rs 190 per bag. Cement makers had, on Monday, refused to cut prices following the meeting with industry ministry officials even as steel makers agreed to roll-back their recent hike in prices in the government |
