Cement stocks had a significant rally on December 2, led by Ultratech Cement, which surged over 3 percent and became the top gainer on the Nifty 50 index. This surge was driven by a positive outlook from Jefferies, which predicts a recovery for Indian cement companies in the second half of the fiscal year.

Other notable players such as Shree Cement, India Cements, JK Lakshmi Cement, JK Cement, Andhra Cements, and ACC also saw gains of 2-3 percent. Jefferies projects an 8-10 percent volume growth for the cement sector in H2FY25, in contrast to a flat performance in the first half of the fiscal year. The firm notes that demand growth has moderately improved in October and November, with expectations for continued recovery in the fourth quarter due to a revival in government capital expenditure.

Ultratech Cement is identified as the top pick among large-cap stocks, while JK Cement is favored in the mid-cap segment due to bottoming-out prices and an improving demand environment.