GOLDEN RULES FOR TRADING

Capital Goods Stock Outlook for the week – 08 to 11.03.2016 Seen trading in a narrow range with a positive bias

Capital Goods Stock Outlook for the week – 08 to 11.03.2016

Stockss of capital goods companies are seen trading in a narrow range with a positive
bias, but gains are likely to be limited owing to the lack of any sector-specific
triggers.

Focus, however, will be on product companies as sluggish capital expenditure cycle
and weak order visibility is seen impacting performance of capital goods companies
operating in the projects business like Larsen & Toubro, Bharat Heavy Electricals,
and Thermax.

Shares of Siemens are likely to gain as the company's management, post market hours
today, announced it will consider special dividend after the sale of its healthcare
devices division.

The company's board is considering the distribution of 50% of the sale consideration
as special dividend. At the meeting of the board of directors, the company also
approved the sale of Siemens Healthcare Pvt Ltd to a subsidiary of parent Siemens
AG.