Street Signs: Cement back in vogue, brokerages go slow on ads, and more

Investor interest in cement stocks cast in concrete

Cement stocks are catching investor eye amid hopes of improved demand and fall in oil prices. Brent crude hit a six-month low last week. Crude prices have a bearing on major raw materials in the cement sector. Analysts said a recent correction in other key raw material prices should start easing cost pressures from the third quarter of this financial year (2022-23). Moreover, a pick-up in monsoon bodes well for demand in the medium term. UltraTech, JK Cement, Dalmia Cement, Birla Corporation, and JK Lakshmi Cement are likely to gain.

FTSE miss may weigh on Kotak Bank stock

Shares of Kotak Mahindra Bank (Kotak Bank) could come under pressure after it missed out on inclusion in the Financial Times Stock Exchange (FTSE) Index. The private sector lender was widely expected to get included in the FTSE All-World Index after the legroom for foreign portfolio investors increased to 20 per cent in the quarter ended June. “Looking at recent price action, one can say the Street was expecting Kotak Bank’s inclusion. As a result, the stock could decline as much as 5 per cent on Monday,” said an analyst at Edelweiss Alternative Research. Besides Kotak Bank, shares of Piramal Enterprises, too, could come under pressure owing to its exclusion from the index, following a demerger scheme.

Brokerages slam brakes on promotions

The domestic broking industry has seen a sharp decline in new account openings in the past two months. This has prompted several players to temper their aggression towards acquiring new clients. Industry players say several players have scaled back on advertising spending and slashed incentives parcelled out to new investors. In the past two months, the industry added 1.8 million dematerialised (demat) accounts - 37 per cent lower than the average 2.8 million added in the first half of calendar year 2022. Along with demat accounts, retail trading volumes, too, have dropped since June. Industry players are hoping that the latest spring-back in the market will once again breathe life into an otherwise reticent retail investor sentiment.