Capital Goods Stocks Outlook for the week – 29.06.2015 to
03.07.2015
In
range next week; macro economic data eyed
Stocks
of capital goods companies are seen moving in a narrow range next week, but
stocks may see selling pressure at high levels. Detailing of macro economic
data such as core sector growth on Tuesday may also be a trigger for stocks of
the sector. We believe a delay in the recovery cycle than earlier anticipated
is clearly visible in the overall performance of the sector and also the commentaries
from most of the managements. However, on the positive side, there are signs of
improvement on the order inflow front as the order backlog of our coverage
universe is around 15% higher YoY. If economic data is in line with
expectation, there is no major stock movement expected in capital goods space.
