Capital Goods Stocks Outlook for the week – 14 to 18.07.2014
(www.rupeedesk.in)
(www.rupeedesk.in)
Stocks of most capital goods
companies are likely to continue trading with a negative
bias next week on the back of
profit-booking in the short term. But investors looking to
enter the stock with a four-five
month view may resort to buying on dips. Last week, in
the build-up to the regular
budget, stocks of capital goods companies and infrastructure
companies were among the biggest
gainers.
However, the budget on Thursday
did not meet the expectations of the sector, as it did not
provide much clarity on the
resolution of issues plaguing the sector. Issues like land
acquisition, environmental
clearances for projects and reduction in minimum alternative
tax remain hazy. Whatever sops
have been provided for the sector are unlikely to result in an immediate turnaround of the
sector.
