CAPITAL
GOODS STOCKS OUTLOOK FOR THE WEEK – 01 to 05.09.2014
( www.rupeedesk.in )
Scrips of capital
goods companies are seen trading with a positive bias this week on value
buying following the
correction in share prices this week.
However, not all
stocks may catch long-term investors' interest, and there could be some
profit booking
towards the end of the week.
The last week's
correction in prices, as well as growing optimism of a turnaround for the
sector from
September, may see long term investors building positions in sector majors
such as Larsen &
Toubro, and Crompton Greaves, as well as cooling solution maker
Voltas.
Based on the
commentary from various companies, H2FY15 should see order inflow
traction in the power
transmission, transportation infrastructure and water segments.
However, it also
added that prospects of a pick-up in sales of short-cycle industrial goods
like engines, pumps
and compressors are healthier compared with long-cycle businesses.
Electricals and
consumer goods companies are also likely to be the first to benefit from
the early stages of
growth. Boiler-turbine-generator players such as Siemens, ABB and
BHEL, on the other
hand, may take longer to see significant improvement in order inflows owing to the
over capacity in power sector.
