Why Stocks of Major Cement Companies Witness Sharp Fall Today?

The stocks of several leading cement companies are trading in red in share market today. Stocks of leading companies like Shree Cements, Ramco Cements, ACC Cements fell sharply. Earlier, India's leading cement company, UltraTech Cement's board had given a nod to the new expansion plan of Rs 12,886 crore on Thursday and the move is expected to cause a stiff competition in the sector.

According to the company's press release, the capex is likely to surge the capacity by a whopping 22.6 million tonnes per annum or mtpa via greenfield and brownfield projects. It will involve building integrated and grinding units along with bulk terminals all over the country. The capacity expansion plan is going to cost $76 per tonne of cement, according to the company.

Earlier on May 16, Gautam Adani led group Adani acquired controlling stake in Zurich based Holcim's cement business in India.

Despite announcing the expansion plan, share of UltraTech Cement witnessed a sharp fall of 5.68% at 3.15 pm today. On the NSE, shares of UltraTech Cement has so far fallen by 5.31% at 5,691 apiece. The stock has touched the day's low of 5,610 and day's high of 6,115 so far.

Shares of Shree Cements too fell sharply by 4.54%. Shree Cement stock on NSE has lost 4.67% till 3:20 pm at 20,623 apiece.

Shares of ACC Ltd has lost 2.92% at 3:21 om at 2130 on NSE. The day's high range so far recorded at 2216 apiece and day's low range recorded at 2122 apiece.

Shares of India Cements Ltd witnessed a decline of 2.76% on NSE at 163.95 apiece till noon trade at 3:24 pm.

Shares of Ramco Cements Limited fell sharply by 9.23% at 631.00 on NSE.

Shares of Dalmia Bharat registered a dip of 8.79% at 1253% on NSE at 3.28 pm.

Ambuja Cements Ltd shares too dipped by 1.34% today at 368.5 on the NSE.