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Trading in stocks of capital goods and engineering companies is seen mixed in the coming sessions, with investors picking stocks of product- based companies over projectbased ones. Stocks of TD Power Systems and Cummins India are expected to trade with a positive bias, as most of their orders are short cycle orders. Stocks of ABB and Siemens are seen trading down, as these companies cater to projectbased
orders, which take longer to complete. Investors are also seen favouring stocks of capital good companies with strong fundamentals, good governance, and balanced public and private sector order exposure. Companies like power equipment maker, Thermax, and infrastructure and engineering heavyweight, Larsen & Toubro, are likely to see an uptick on account of healthy exposure to private sector orders. Thermax has orders for captive power plants from private companies and is therefore likely to maintain its margins unlike Bharat Heavy Electricals. Bharat Heavy Electricals has a lot of public sector orders and is susceptible to margin pressure. Stocks of capital goods and engineering companies could also see some movement if the government announces reforms pertaining to environmental clearance and land acquisition. The sector is also awaiting an interest rate revival.
Trading in stocks of capital goods and engineering companies is seen mixed in the coming sessions, with investors picking stocks of product- based companies over projectbased ones. Stocks of TD Power Systems and Cummins India are expected to trade with a positive bias, as most of their orders are short cycle orders. Stocks of ABB and Siemens are seen trading down, as these companies cater to projectbased
orders, which take longer to complete. Investors are also seen favouring stocks of capital good companies with strong fundamentals, good governance, and balanced public and private sector order exposure. Companies like power equipment maker, Thermax, and infrastructure and engineering heavyweight, Larsen & Toubro, are likely to see an uptick on account of healthy exposure to private sector orders. Thermax has orders for captive power plants from private companies and is therefore likely to maintain its margins unlike Bharat Heavy Electricals. Bharat Heavy Electricals has a lot of public sector orders and is susceptible to margin pressure. Stocks of capital goods and engineering companies could also see some movement if the government announces reforms pertaining to environmental clearance and land acquisition. The sector is also awaiting an interest rate revival.
