Cement stocks up on excise duty cut

Cement stocks, led by India Cements, on Wednesday surged in morning trade on the Bombay Stock Exchange, a day after the government announced excise duty cut on bulk cement by two per cent, according to media reports.

Cements opened up 3.06 per cent to touch an intra-day high of Rs 101. It was later trading at Rs 100, up 2.04 per cent on the BSE. This would be great sign for realty sector in India. As the service tax cut in the product would boost demand in long-run.

The government measure would have positive impact on the economy and would help companies in maintain their good financial condition in the global financial crisis. The cut in the excise is relief to the companies and the indices related to cement companies shine in India stock market on Wednesday.