Ceramic stocks crack
Kajaria Ceramics and Somany Ceramics are among the top five losers on the BSE consistently. Kajaria is currently down 7% at Rs.965 while Somany fell almost 6% to Rs.677.65.
The reason for this persistent fall? Ukraine crisis. The ceramic industry runs on gas-fired kilns and it is among the biggest consumers of gas. With gas prices, along with crude hitting the sky, this industry is expected to fell the impact pretty strong.
The prices have been kept tightly under the lid; once the assembly election results are out on 10th March, price hikes are expected to hit this sector. Their production costs are sure to spike up, which in turn means they too will resort to price hikes to protect the margins.
This, in the short term is expected to hit demand and that’s what the market is discounting currently.