ACC, Ambuja Cement, UltraTech Shares Jump As GST Declines On Cement To 18% From 28%
The market-cap of cement companies advanced Rs 3,470.35 crore to Rs 6.2 lakh crore as of 9:49 a.m.
ACC Ltd., Ambuja Cement Ltd., and UltraTech Cement Ltd. share prices jumped in Thursday's session as the Goods and Services Tax on cement fell to 18% from 28%. The latest rate revision was part of the GST reforms which will come into effect from Sept 22.
The benefit will likely reach consumers as companies are bound under the anti-profiteering rules. In long time, companies can hike prices. Dealers will likely keep lower inventory in near term.
In the GST Council has approved the proposal to bring down the rate structure to two slabs from four. Now, regular consumption items to most categories of consumption goods will attract 18% GST compared to 28% or above earlier.
ACC Ltd., Ambuja Cement Ltd., and UltraTech Cement Ltd. share prices were leading the rally in cement stocks. ACC Ltd. share price advanced 2.06% to Rs 1,881.1 apiece so far today. The stock was trading 1.18% higher at Rs 1,863 apiece as of 9:45 a.m.
Ambuja Cement Ltd. share price advanced 3.93% to Rs 596 apiece. UltraTech Cement Ltd. share price rose as much as 2.86% to Rs 13,097 apiece.
Bucking the trend, the Ramco Cement Ltd. share price fell 0.13% to Rs 1,083 apiece.
The market-cap of cement companies advanced Rs 3,470.35 crore to Rs 6.2 lakh crore as of 9:49 a.m.
