Cement, paint, pipes: Will construction relaxation aid these sectors?

Truman Slate

Even as India prepares for an extended lockdown to fight the coronavirus (Covid-19) pandemic, construction and allied sector stares at a long and a dull period. In doldrums since early 2018, country’s building-material segment could see further compression with the real estate, its key demand driver, taking longer-than-expected to get its momentum back, analysts say.

Prime Minister Narendra Modi on April 14 extended the lockdown in India by 19 days till May 3, though construction of buildings has been allowed from April 20 wherever labour is available on-site.

“While it is difficult to accurately forecast the extent of disruption, we believe real estate, being relatively discretionary in nature, will see meaningful pain,” writes Achal Lohade, research analyst at JM Financial, in a co-authored sector report with Shrenik Bhachhawat and Koundinya Nimmagadda.

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