Cement shares soar up to 17%; ACC, Birla Corp, JK Lakshmi hit 52-week highs

Analysts believe cement demand would remain healthy aided by expedited pre-election government spend, continued focus of infrastructure development.

Shares of cement companies were in demand and rallied up to 17 per cent backed by heavy volumes on expectations of healthy demand. Prism Johnson, Birla Corporation, Grasim Industries, India Cements, ACC and JK Lakshmi Cement were up over 4 per cent. In comparison, the S&P BSE Sensex was up 0.21 per cent at 71,583 at 02:45 pm.

Analysts believe cement demand would remain healthy aided by expedited pre-election government spend, continued focus of government on infrastructure development, and sustained demand from the residential housing segment.

Further, easing power & fuel costs would continue to cushion operating profit margins. The large players