Capital Goods
Stocks Outlook for the week – 13 to 17.07.2015
(Stocks are likely to trade in a
narrow range)
( www.rupeedesk.in )
Stocks of most capital goods
companies are seen opening weak and trading in a narrow range next
week, owing to negative
industrial growth data detailed today, after market hours. Overall, India's
industrial growth slowed to 2.7%
in May from 3.4% a month ago, primarily due to moderation in
capital goods growth and
contraction in consumer goods, data released by the Central Statistics
Office showed.
Data for capital goods sector brought
nothing to cheer, as well. The output of capital goods segment-
-an indicator of investment
demand--rose just 1.8% in May against 6.8% in April, and 4.2% a year
ago.
The quarterly tracker on project
investment activity in India was released by CMIE last week. The
trends are still not very
encouraging with orders outstanding witnessing only a modest uptick while
new project announcement
witnessing a moderation year-on-year momentum.
Investors are seen to be cautious
on the capital goods segment, as most management officials of
companies in the sector have
shared a subdued outlook for order inflows for 2015-16 (Apr-Mar).
Also, another likely source of
disappointment can be the upcoming earnings season.
