Capital Goods Stocks
Outlook for the week – 18 to 22.07.2016
(Seen in range in absence
of triggers)
( www.rupeedesk.in )
Stocks of most capital goods companies are likely to trade
within a range next week, in the absence of major cues in the short term, apart from the announcement of
corporate earnings for Apr-Jun. The
Apr-Jun earnings of major companies are lined up for the
last week of July and early August. This
apart, there might be some stock-specific movement with
respect to Larsen & Toubro and Crompton
Greaves.
Close on the heels of the 17.5-mln-share initial public
offering of L&T Infotech, engineering major
Larsen & Toubro said it will sell 15% stake in
subsidiary L&T Technology Services, in an initial
public offering reportedly worth 7.5-10.0 bln rupees. Stocks
of L&T hit a six-month high of 1,595.00
rupees on the news, and could rise above 1,620 rupees in the
next few weeks.
With Crompton Greaves halting operations at its Mandideep
manufacturing plant in Madhya Pradesh
following torrential rains, stocks of the company are seen
under pressure next week. The trend in the
stock is weak and it may fall to 68 rupees in the near term.
The management is confident that
normalcy in operations will be restored in a short
time," the Avantha Group-owned company said in a
release.
In the coming week, shares of state-owned Bharat Heavy
Electricals are likely to be weighed by a
slower recovery in execution, an improved order outlook
notwithstanding.