Cement stocks plunge amid penalty worries

PTI Updated - June 20, 2012 at 09:48 PM.

Cement stocks lost ground today, falling by up to 4 per cent, amid reports that the Competition Commission of India may soon impose penalty on them over alleged price cartelisation.

Shares of ACC fell 3.82 per cent to Rs 1,180.80, while Ambuja Cements lost 3 per cent to Rs 165.55 and UltraTech Cement plunged 3.31 per cent to Rs 1,396.70 on the BSE.

Among others, India Cements was trading lower by 0.99 per cent and Madras Cements was down 2.42 per cent.

According to news reports, the CCI is believed to have slapped a penalty of about Rs 3,000 crore on 11 big cement manufacturers, found guilty of being involved in price cartel.

The panel was probing the cartelisation charges based on complaints from realtors’ body, Builders Association of India, which alleged that the retail prices fixed by cement manufacturers were almost the same.

Published on June 20, 2012 07:43