Capital Goods
Stocks Outlook for the week – 08 to 12.09.2014
( www.rupeedesk.in )
We expect most capital goods
stocks to track the broad market, which is likely to be
positive next week on the back of
improved global cues. Mid-cap stocks Crompton
Greaves and Voltas are likely to
either consolidate their positions or gain further next
week. Both stocks have gained
between 6-12% over the past five trading sessions.
We are turning positive on their
outlook for capital goods companies, especially those
that have an international
exposure. There is a growing optimism that a turnaround could
be seen in the sector from this
month onwards.
We opine that the companies
having international exposure could benefit and outperform
the purely domestic focused
companies till significant improvement in the
domestic business environment is
observed. "At the same time, we are not negative on
the domestic market and on the
basis of recent trends and industry interaction; do note that the capex cycle may have
bottomed out."
