Capital
Goods Stocks Outlook for the week – 08 to 12.12.2014
( www.rupeedesk.in )
Stocks of capital
goods companies are likely to track the broad market, which in turn is expected
to be range bound due
to lack of triggers next week. The only likely major trigger will be the
announcement of index
of industrial production data for October on Friday. Last month, the IIP
data positively
surprised the Street, leading to a surge in most stocks.
Long-term investors
in sector bigwigs such as Larsen & Toubro and Bharat Heavy Electricals are
likely to buy on dips
next week. The underlying sentiment in the market remains bullish as
investors hope the
government's reforms will drive the investment cycle in the sector.
Economic activity has
gathered pace, and business confidence improvement has created
congenial conditions
for starting investment cycle. Thermax is likely to be in focus early next
week. The company
said post market hours that it has won an order worth 3.51 bln rupees from
an African company
for building and commissioning a power plant. Siemens is likely to extend gains next week, as
the market continues to be bullish on mid- and small-cap shares.
