Continuing the upward trend cements stocks saw gained up to 7 percent in intra-day deals today. The surge came after the Cement Manufacturers' Association (CMA) signed a new wage settlement pact with major trade unions last week, which would increase the gross monthly pay of the cement employees by Rs 5,000.

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Cement Manufacturers Association is the apex body of large (1 million tonnes capacity per annum) cement manufacturers in India.

Amid individual stocks, India Cements escalated the most (7.11 percent) in intraday deals, followed by ACC (up 5.27 percent), Ambuja Cements (up 3.48 percent), Shree Cement (up 3.44 percent) and UltraTech Cement (3.24 percent). In comparison, the Sensex was up 0.64 percent or 231.62 points at 36,205.33.

The CMA in its statement said, "The move will benefit around 20,000 employees in the Indian cement industry. The settlement will provide for service weightage benefits, enhanced DA and other benefits." The settlement would be for four years starting from April 1, 2018 to March 31, 2022.

Another reason behind the cement rally is that the prices have increased among all regions. The cement prices jumped by Rs 40-50 per bag effective from February 2019, in South India. East India saw a price hike of Rs 5-10 per bag while North India saw Rs 10-12 per kg increase in the cement prices. Thus, with this cement price hike, the investors are hoping of a better Q4 earnings result and operational efficiency.