Demand for cement may be muted in coming months
The slowdown in the economy may adversely affect construction sector and thereby demand for cement, some analysts feel.
Earlier, industry watchers expected demand for the building material to revive after monsoon. But the slackness in economic activity prompted them to revise their expectation.
Macroeconomic risk has heightened following the slow growth of growing macro concerns over weakening GDP and the sharp depreciation of rupee.
The tight liquidity policy adopted by Reserve Bank of India (RBI) on the back of rupee depreciation may affect economic growth adversely and thereby cement demand, experts feel.
However, analysts are optimistic about the long run growth prospect of cement sector.