www.rupeedesk.in
Stocks of capital goods companies are seen tracking the larger market, and some of them
may witness marginal profit booking in next week. Yesterday, the BSE capital goods
index jumped 8.1% from its close last Friday, while the benchmark share indices ended at
record closing highs and scaled lifetime highs intraday. The bullish run is owing to
sustained inflows from foreign institutional investors amid growing perception towards
expectations on general elections. There is no sector-specific trigger acting behind the
sudden surge in capital goods stocks and there may be profit booking in stocks of
Bharat Heavy Electricals, ABB, and Siemens in the next week.
However, Stocks of sector bellwether Larsen & Toubro and electrical equipment maker
Crompton Greaves may continue to see some upside in coming weeks owing to strong
business fundamentals. L&T has always emerged stronger from a deceleration in the
domestic economy. We believe it is no different this time around given significant market
share gains across sub sectors. Given its strong international business and end of its
restructuring process, Crompton Greaves is also likely to be favoured by investors. On
the other hand, no positive fundamental trigger exists for Bharat Heavy Electricals and
the recent spike in share prices was largely on account of the positive sentiment in the
wider market.
Stocks of capital goods companies are seen tracking the larger market, and some of them
may witness marginal profit booking in next week. Yesterday, the BSE capital goods
index jumped 8.1% from its close last Friday, while the benchmark share indices ended at
record closing highs and scaled lifetime highs intraday. The bullish run is owing to
sustained inflows from foreign institutional investors amid growing perception towards
expectations on general elections. There is no sector-specific trigger acting behind the
sudden surge in capital goods stocks and there may be profit booking in stocks of
Bharat Heavy Electricals, ABB, and Siemens in the next week.
However, Stocks of sector bellwether Larsen & Toubro and electrical equipment maker
Crompton Greaves may continue to see some upside in coming weeks owing to strong
business fundamentals. L&T has always emerged stronger from a deceleration in the
domestic economy. We believe it is no different this time around given significant market
share gains across sub sectors. Given its strong international business and end of its
restructuring process, Crompton Greaves is also likely to be favoured by investors. On
the other hand, no positive fundamental trigger exists for Bharat Heavy Electricals and
the recent spike in share prices was largely on account of the positive sentiment in the
wider market.
