Capital Goods Stocks Outlook for the week – 21 to 25.03.2016
Seen in range; L&T shares may
gain
( www.rupeedesk.in )
Stocks
of capital goods companies are seen trading in a range with a slight positive
bias, as a short
week
ahead may keep action in the stock markets under check.
L&T
has remained out of limelight, owing to its relative underperformance vis-a-vis
the benchmarks
over
the last seven months. However, recent developments on the price front suggest
a turnaround in
structure
and provide a good risk-reward set-up for positional traders to ride the next
up-move.
On
Tuesday, Crompton Greaves demerged the consumer electrical division and the
stocks now reflect only the power business of the company, which has resulted
in a sharp drop in the share price.
Stocks
of cooling products providers such as Blue Star and Voltas are also likely to
rise in the short-tomedium term. With improving market share of (Blue Star) in
northern region and an improved
product
mix, the management sees 25% growth in room AC sales in value terms in FY17E
(20% in
FY16)
after a meeting with the Blue Star management.