Expected second-quarter pick-up in Indian demand

Indian cement demand is expected to see a revival over the July-September quarter on the back of an increase in infrastructure spending.

Consumption continued to remain tepid during March, leading cement producers to cut their dispatches by 20-30 per cent even in the northern region which has been one of the most stable regions, according to brokerage firm PL India. Its report on the sector said that the weakness was primarily influenced by the government’s reduced spending to manage the fiscal deficit.

However, PL India expect a gradual revival in demand to start from 2QFY16 on the back of a “steep allocation to infrastructure spending, as announced in the recent Union Budget. Increased government spending is expected to stimulate private spending which has been “under severe pressure for the past couple of years,” the report added. (Source: Economic Times)