Capital Goods Stocks Outlook for the week – 09 to 13.Jun.2014
(www.rupeedesk.in)
Most stocks of capital goods are
seen trading up taking cues from the broader market
next week as investor are seen
building long positions in anticipation of the government
reviving the infrastructure and
power sectors.
Investors are seen taking long
positions on Crompton Greaves and Larsen & Toubro
owing to significant upside seen
in the stocks. CGL (Crompton Greaves) is favourably
placed to capitalise on the
emerging opportunities.
The restructuring pain is behind
us and now the market is looking ahead to positive
developments in the domestic
environment where the power and industrial sectors could
pick up. Similarly, capital goods
and infrastructure major L&T is also a favourite
In the bull market phase. L&T
has been able to demonstrate its superiority with respect to
orders, execution and
profitability within the Indian capital goods space.
With likely improvement in
external environment in next 12-18 months, L&T is a mustown
stock among India's large cap
companies. Other favourites are consumer durables
such as Voltas, Blue Star as well
as boiler-turbine-generator Bharat Heavy Electricals.
