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Stocks of capital goods companies are seen trading rangebound with a positive bias in the coming sessions as investors continue to remain bullish on the sector owing to signs of recovery in the cyclical business.
Investors are bullish on shares of Larsen & Toubro and Crompton Greaves. Over the last week, capital goods and engineering major L&T's shares gained over 11%, after the company's arm L&T Infrastructure Development Projects Ltd secured a 10-bln-rupee equity infusion from a Canadian pension fund--CCP Investment Board Inc.
In addition to this, the company is seen as one of the biggest beneficiary of a turnaround in domestic industrial capex, as and when it happens. Capital goods stocks are seen gaining also due to a sentimental boost as investors see demand coming back to the sector in the medium term.
The expectation of an incrementally better macro environment and pickup in investment sentiment following the general elections has supported 17% outperformance by the sector versus Sensex over the last six months. There are signs that overseas markets--especially those in Europe are improving. This is seen benefiting companies like Crompton Greaves, which have strong overseas business.
Stocks of capital goods companies are seen trading rangebound with a positive bias in the coming sessions as investors continue to remain bullish on the sector owing to signs of recovery in the cyclical business.
Investors are bullish on shares of Larsen & Toubro and Crompton Greaves. Over the last week, capital goods and engineering major L&T's shares gained over 11%, after the company's arm L&T Infrastructure Development Projects Ltd secured a 10-bln-rupee equity infusion from a Canadian pension fund--CCP Investment Board Inc.
In addition to this, the company is seen as one of the biggest beneficiary of a turnaround in domestic industrial capex, as and when it happens. Capital goods stocks are seen gaining also due to a sentimental boost as investors see demand coming back to the sector in the medium term.
The expectation of an incrementally better macro environment and pickup in investment sentiment following the general elections has supported 17% outperformance by the sector versus Sensex over the last six months. There are signs that overseas markets--especially those in Europe are improving. This is seen benefiting companies like Crompton Greaves, which have strong overseas business.
