Capital Goods Stocks
Outlook for the week – 11 to 15.07.2016
(Seen trade with
range-bound as earning issue)
Next week, stocks of capital goods companies are expected to
trade in a range and on a cautious note,
as announcement of corporate earnings for Apr-Jun begins,
and in the absence of any other major
trigger.
All eyes will be on management commentary and the outlook on
key issues, as companies start
detailing their June quarter earnings in the second half of
July. Not much upside is seen in the stocks
of major capital goods companies in the coming week.
Sector bellwether Larsen & Toubro is seen positive in
the near term, with news of subsidiary L&T
Infotech's initial public offering on Jul 11 almost factored
in by the market.
Stocks of state-owned Bharat Heavy Electricals Ltd might see
a downside, after JP Morgan said there
was "high probability" that the company would see
its order inflow fall in 2016-17 (Apr-Mar). In the
last six sessions, the stock has risen more than 19%, before
hitting a three-month high of 141.95
rupees.