Information on Cement and Steel Sector after budget

Please take informed decision. This is a newsletter I receive which I am sharing with the group. It would not be appropriate to buy during this time of the downturn in the market.

The worst seems to be over for cement. As the shares have fallen considerably there will be bottom fishing tomorrow. Kesoram Ind. That has fallen from Rs.626 to 400 and Birla Corp that has come down from Rs.412 to 266 look attractive. Among low priced NCL industries have come down from Rs.65 to 43 in spite of excellent show.

Huge allocations are provided in Bharat Nirman, Rural Housing, Road building and constructing National High ways hence infra structure, steel, cement demand will be there.

Similarly steel scrips will also recover since excise is cut on steel scrap from 20% to 10% and duty on coking coal is totally removed. Further there is a export duty on iron ore making it now cheaper locally. SAIL which has come down to Rs.108 from Rs.122 looks attractive.

Wait till normalcy returns to the markets. Better pay little more and buy rather than buying in an unpredictable market.

When every thing was falling one is surprised to see Teledata moving up from a low of Rs.39.90 to Rs.44 and closing at Rs.42.90