New Delhi, April 11 -- The cement sector in India is facing challenges due to muted pricing power, and rising costs despite resilient demand, according to a research report by HDFC Securities.

The brokerage noted that the cement sector has likely witnessed pricing pressure in the March quarter and the likely to continue in the coming quarter building on extra worries in addition to the trade disruptions due to the ongoing tensions in West Asia.

The brokerage further said that Despite a resilient demand outlook, the sector is expected to face headwinds in the coming quarters, with energy and packaging costs projected to rise.

"Cement demand outlook remains resilient, but pricing power continues to underwhelm despite sector consolidation...