UltraTech Cement, Ambuja Cements, ACC, Shree Cement Share Price Rise After GST Cut – What It Means for the Market Today

Market Performance

Cement stocks were in focus in Thursday’s trade as the sector reacted to a big policy shift. Shares of UltraTech Cement, Ambuja Cements, ACC, and Shree Cement moved higher, with intraday gains of up to 3%.

The cheer in the morning session, however, cooled off later in the day. By early afternoon, most of these stocks had given up a chunk of their gains and were trading only marginally higher.

This quick swing reflected the market’s cautious mood—optimism from the GST reform met with concerns about near-term demand and pricing pressures.

GST Reforms and the Cement Sector

The trigger for Thursday’s rally was the announcement from the GST Council, chaired by Finance Minister Nirmala Sitharaman.

• The council decided to cut GST on cement from 28% to 18%.
• This move comes at a time when the sector is adding capacity to meet expected demand growth.

The rate cut is seen as a structural positive for the industry. Lower taxation reduces the cost burden and improves affordability for infrastructure projects and real estate, both of which are heavy consumers of cement.

Company-Wise Market Reaction

The impact was visible across leading players:

• UltraTech Cement share price: Jumped in early trade before paring gains.
• Ambuja Cements share price: Followed a similar trend, spiking initially but losing some steam.
• ACC share price: Reacted positively to the tax reform, though ended only slightly higher.
• Shree Cement share price: Mirrored peers, with intraday gains easing by afternoon.

Investors clearly welcomed the reform but chose to tread cautiously, awaiting clarity on demand recovery in the seasonally weak September quarter.

Key Industry Details

The GST cut holds significance beyond a single trading session. It aligns with the government’s broader focus on infrastructure-led growth. But for cement makers, the immediate picture still has challenges:

• Demand softness due to monsoon slowdown in construction.
• Pricing pressure, as cost absorption and recovery in cement prices remain uneven.
• Seasonality, with the September quarter typically showing weaker volumes.

Summary

Cement stocks—UltraTech, Ambuja, ACC, and Shree Cement—saw up to 3% intraday gains on Thursday after the GST Council slashed tax on cement from 28% to 18%.

The reform is a long-term positive for the sector, lowering costs and boosting affordability. However, in the near term, the market remains focused on how quickly demand and pricing recover after the monsoon-driven lull.

For now, the sector sits at the crossroads—policy support is strong, but fundamentals will decide the pace of the next rally.