GACL Dives As Low Prices Seen Affecting Results

Mumbai, Sept 18: | Updated: Sep 19 2003, 05:30am hrs
The share price of cement major Gujarat Ambuja Cements Ltd (GACL) nosedived by 3.71 per cent on BSE as analysts expect the second quarter (Q2) results to be impacted by the fall in cement prices during monsoon.

The stock opened at Rs 213 which was also the days high before it finally settled at Rs 206.55 on BSE. On NSE GACL dropped by 4.41 per cent to end the day at Rs 206.10 as against its earlier closing of Rs 215.60.

The stock touched a low of Rs 201 on BSE, while on NSE it dropped to Rs 200.90. GACL clocked trading volumes of 5,66,458 shares on BSE, whilst on NSE a total of 11,72,341 shares changed hands.

According to market analysts the cement sector has been in the red as the prices have fallen in the southern and western regions which will result in poor results of most companies in the quarter ended July-September.

Said an analyst, Although the stock has fallen our outlook remains positive as post monsoon we expect the price realisations to improve. Cement stocks are fairly priced at current levels and the bottomlines are likely to be better in the next quarter.