Cement companies set to gain in coming months

A recovery in demand on the back of a good monsoon this year and low capacity additions are likely to reflect in the earnings of cement companies, leading to a re-rating of shares of these firms, according to a Deutsche Bank sector note. Shares of most cement producers were trading with gains in the range of 1 to 4 per cent. In its sectoral analysis, Deutsche Bank said that the progressive distribution of rainfall in the country augurs well for the sector in the second-half of the current fiscal after a weak demand in August in the range of 2 to 4 per cent.