About the Cement Sector
Cement is a universal and important building material used in any modern construction. It is a durable binder for structures that holds coarse aggregates like gravel, sand, and steel. Cement is an irreplaceable and essential part of construction due to its durability and high strength.
India is the second-largest cement producer in the world, and it has more than 8% of the global installed capacity. The country's robust infrastructure and construction sector development initiatives, including the creation of 98 smart cities, are set to drive the cement industry.
Future Outlook of the Cement Sector in India
With substantial allocations in the Union Budget 2023-24 for infrastructure, affordable housing, and road projects, the domestic cement sector is expected to see huge growth. The consumption of cement is expected to touch 450.78 million tonnes by FY 2027.
Things To Consider Before Investing in the Cement Sector
- Overview of the industry: Examine the current condition of the cement sector, including recent growth trends and major players.
- Market demand: Assess the demand for the cement industry. Check if there are ongoing and upcoming infrastructure projects, as increased construction and development activities positively impact cement demand. Also, check about government initiatives and budget allocations for infrastructure and housing, as these policies significantly influence the cement sector.
- Raw material availability: Check the availability and cost of raw materials like limestone and gypsum, as these materials directly impact production costs.
- Environmental regulations: Stay updated on environmental regulations affecting the cement industry, as compliance can impact production processes and costs.
- Economic conditions: Observe the economic conditions, such as GDP growth and housing market trends, as they influence the overall health of the construction sector.
How To Invest in Cement Stocks?
Investing in cement stocks via Angel One is easy. Simply follow these steps:
- Log in to your Angel One account.
- Click on the search icon and look for your desired cement stock.
- Now, place your buy order. Simply click on the ‘Buy’ button, enter your desired quantity, and select the order type.
- To complete your transaction, click on the ‘Buy’ button.
If you don’t have a Demat account with Angel One, you can open one for free online within minutes.
