Bearish signal on daily chart
Slowdown in growth of industry
Though the demand started indicating some signs of improvement since December, 2019, the momentum could not be sustained due to the outbreak of the COVID-19 pandemic. This severely impacted construction activities, which consequently resulted in the industry witnessing de-growth for the year, the first time in the last two decades.
Decline in logistic cost
Logistics cost reduced from Rs 1,187/t to Rs 1,144/t due to a reduction in lead distance and exemption from busy season surcharge on railway freight for an extended period. Diesel prices were also lower by 4% over the previous year. Moreover, the integration of acquired assets supported in realising synergies, thereby lowering logistics costs.
Being Hopeful is the key
With anticipated pick-up in private investment, financial sector reforms and resolution of stressed assets under the Insolvency and Bankruptcy Code, expected to contribute to cleaning up of banks’ balance sheets and positive interventions by the Government of India, the outlook for fiscal 2020-21 was seen to remain largely positive