Capital Goods Stocks Outlook for the week – 24 to
28.10.2016
(Seen down; Cummins India in focus)
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The shares of capital goods companies are likely to be down, due
to the absence of
significant triggers and an overall weak outlook on business
prospects of sector majors.
There is likely to be some stock-specific action next week, after
the government today
said it is mulling a scheme to encourage domestic manufacturing
and adoption of new
technologies in the sector.
There are by and large no major cues to look forward to in the
short term. State-owned
Bharat Heavy Electricals could see minor gains as an order from
the Tamil Nadu
Generation and Distribution Corp is expected to be the
second-largest for the company,
at 78 bln rupees.
The scrip could rise to 150 rupees in the near-term. Shares of
Larsen & Toubro could
see a slight rise to 1,520 rupees in the coming week, following an
order by the Inland
Waterways Authority of India to build a multi-modal terminal at
Sahibganj in
Jharkhand. The terminal is part of the 42-bln-rupee Jal Marg Vikas
project to develop
National Waterway-1. Market participants will also keep an eye on
Cummins India as it
will detail
its Jul-Sep earnings on Wednesday.