Capital Goods Stocks
Outlook for the week for the week – 03 to 07.10.2016
May see more
correction; Thermax eyed
Stocks of capital goods companies are likely to see more
correction in the upcoming week in the
absence of significant triggers, apart from the Reserve Bank
of India's monetary policy. Major capital
goods stocks have fallen 1.7-7.8% this week, seeing sharp
declines on Thursday after India said it
had conducted surgical strikes on terror launch pads along
the Line of Control. However, concerns
regarding geopolitical tensions with Pakistan are expected
to lessen next week. The RBI will detail its
monetary policy on Tuesday at 1430 IST. This will be
Governor Urjit Patel's policy debut, where the
central bank is expected to leave interest rates unchanged.
Stocks of Larsen & Toubro are likely to be
range-bound with minor gains, as the sector bellwether won
orders worth 20.46 bln rupees across
various business segments this week. State-owned Bharat
Heavy Electricals is likely to fall more in
the forthcoming week after closing nearly 8% lower this
week, touching a one-month low of 129.60
rupees on Thursday.
