Indian prices rising in the north, down in the south - report

JM Financial says in the past few weeks India cement prices have risen by INR50/bag in the north while they fell by INR20/bag in the south. Across India though cement prices have increased just 1.1 per cent YoY during April-July.

If the divergence continues, north India-based cement makers may see a sharp rebound in profitability after four to five quarters of disappointing earnings, whereas south India-based firms may see some decline in the near-term from decent profits, the broker says.

One possibility for the divergence could be that people renovate or repair their houses in the north ahead of major Hindu festivals such as Dussehra and Diwali, which are celebrated widely in the north but less in the south. (Source: Dow Jones Newswire)