Cement stocks retreat from intraday highs; Realty joins decline

Indian markets turned choppy on Thursday, giving up early gains as investors booked profits after the post-GST rally. The BSE Sensex is under 81,000, standing at 80,900, while Nifty was at 24,808.35, down by more than 100 points from day's high levels.

While benchmark indices slipped from the day’s highs, cement and realty stocks grabbed attention after the GST Council slashed tax on cement to 18% from 28%, a reform expected to ease costs in housing and infrastructure.

But after recording the day’s high by rising 2-3%, cement stocks have come down intraday. Shares of ACC came down from ₹1,881 to ₹1,851, while JK Cement declined by 1.65%. The company’s share price dipped to ₹6,644 from the day’s high of ₹6,898. Ambuja Cements also fell by 0.67% from yesterday’s closing, trading at ₹570 apiece. UltraTech Cement saw its shares dwindle from its day high of ₹13,097 to ₹12,737.

Even Nifty Realty declined, as it opened at 899, hitting an intraday high of 905, but has come down to 888.55. Out of the 10 constituents, 7 have declined, with Anant Raj leading the fall, dipping by 1.42%. Prestige Estate Projects and Phoenix Mills have decreased by 0.40 and 1% respectively. The three toppers of the list are Raymond Realty, Obereroi Realty and Godrej Properties, with the former rising by 1.19%. The Nifty Realty index was down by 0.26% at the time of reporting.

Industry experts continue to keep a positive outlook. According to the Cement Manufacturers’ Association, lowering the rate to 18% corrects a long-standing anomaly and ensures parity with other core materials. “Given that Cement is a foundational input material for infrastructure and housing, treating it more fairly in the tax structure is consistent with global practices and will likely boost consumption of this key building material towards augmenting considerable infrastructure, including affordable housing,” said Mr Neeraj Akhoury, President, Cement Manufacturers’ Association.

“For the real estate sector, this buoyancy is meaningful, as it will reduce the cost of construction. Housing demand is closely tied to consumer confidence and long-term financial planning. When households save more on essentials, it creates a positive environment that encourages investment in real estate, while also strengthening sentiment around property as a stable and rewarding asset class,” said Lincoln Bennet Rodrigues, Chairman and Founder, Bennet & Bernard, Goa.

In today’s trade, investors are treading with caution, even after the GST rationalisation announcement that came on Wednesday evening, in order to boost consumption. The market sentiments are factoring in that Indian exports still face headwinds amid looming U.S. tariff concerns.