www.rupeedesk.in
Stocks of capital goods companies are seen taking cues from the broader market, which is
likely to be volatile ahead of the results of general elections for the 16th Lok Sabha next
week. Growing optimism of a Bharatiya Janata Party-led National Democratic Alliance
government at the Centre saw both CNX Nifty and S&P BSE Sensex end almost 3%
higher on Friday, just a notch below their life-time highs touched during the day.
Capital goods stocks were among the major gainers as a BJP government is seen kickstarting
the depressed infrastructure and power sector. However, rise in the stock prices
unsustainable given that the fundamentals are yet to witness a turnaround. Macro
conditions are slowly turning but it is optimistic to believe that the investment cycle can
gain the same traction over FY15-FY16 as it did during FY05-FY08 when both a
resurgent macro and supportive policy were in place.
Stocks of capital goods companies are seen taking cues from the broader market, which is
likely to be volatile ahead of the results of general elections for the 16th Lok Sabha next
week. Growing optimism of a Bharatiya Janata Party-led National Democratic Alliance
government at the Centre saw both CNX Nifty and S&P BSE Sensex end almost 3%
higher on Friday, just a notch below their life-time highs touched during the day.
Capital goods stocks were among the major gainers as a BJP government is seen kickstarting
the depressed infrastructure and power sector. However, rise in the stock prices
unsustainable given that the fundamentals are yet to witness a turnaround. Macro
conditions are slowly turning but it is optimistic to believe that the investment cycle can
gain the same traction over FY15-FY16 as it did during FY05-FY08 when both a
resurgent macro and supportive policy were in place.
