Capital Goods Stocks Outlook for the week – 15 to 19.12.2014
( www.rupeedesk.in )
Stocks of capital goods companies are seen trading down
next week, tracking the wider market, owing to weak domestic industrial growth data for October.
India's industrial growth slumped to a three-year low of
(-)4.2% in October as consumer durables output declined sharply while the output of
capital goods segment--an indicator of investment demand--contracted 2.3% compared with a 2.5%
growth a year ago, according to data released by Central Statistics Office.
Foreign investors too are likely to be cautious of taking
new positions ahead of the two-day US Federal Reserve Open Committee meeting starting on Tuesday.
However on the domestic front, the consumer price
index-based inflation data for November, released yesterday, brought some good news as it stood at
4.38% compared with 5.52% a year ago. This could bring back hopes of the market seeing a
repo rate cut by the Reserve Bank of India. A rate cut at this juncture could help revive the
investment cycle, which has been quite sluggish for the past eight quarters.
