Capital Goods Stocks Outlook for the week – 28.09.2015 to
01.10.2015
Seen
in range, with negative bias
( www.rupeedesk.in )
Stocks
of most capital goods companies are seen trading in a range with a negative
bias next week in the absence of any positive sector-linked development and
weak investor sentiment in the broader market due to global uncertainties.
However,
stocks of these companies may see some limited upside if the Reserve Bank of India
announces a rate cut during its fourth bi-monthly monetary policy of 2015-16 on
Tuesday.
The
next week will also see the commerce and industry ministry announcing the core sector
growth data for August. As companies operating in core business areas are major
clients for capital goods companies, weak data for August may impact the shares
of companies in the sector. Growth in key core industries fell to 1.1% in July
from 3.0% a month ago.
Stocks
of Bharat Heavy Engineering, Thermax and sector heavyweight Larsen & Toubro
are seen extending losses next week while those of Siemens and KEC are seen in
range with marginal upside.
