Interim Budget 2019 Reaction - Mr. Sabyasachi Majumdar, Senior VP & Group Head - Corporate Ratings, ICRA

Impact: Positive

The continued focus on the housing sector and rural economy in the Union Budget for 2019-20 is likely to have a positive impact on cement industry demand. Housing accounts for 60-65% of the total cement demand in the country. Improved rural incomes is likely to boost rural demand, including demand for rural housing. This in turn will have a positive impact on cement demand as rural housing demand is a significant contributor to the overall cement demand mix. The steps taken in respect of home buyers is expected to incentivize second home purchases, whether for self-occupation or investment purposes. In addition, the income tax rebate for income less than Rs. 5 lakh will improve affordability for home buyers in the lower and middle-income groups. On the infrastructure side, the continued thrust on the road and railway sectors is likely to push cement demand.

Shares of ICRA LTD. was last trading in BSE at Rs.3019.95 as compared to the previous close of Rs. 3019. The total number of shares traded during the day was 511 in over 13 trades.

The stock hit an intraday high of Rs. 3019.95 and intraday low of 2997. The net turnover during the day was Rs. 1531732.

Source : Equity Bulls

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