Capital Goods Stocks for the week – 10 to 14.07.2017
Capital Goods Stocks for the week – 10 to 14.07.2017
( www.rupeedesk.in )
The shares of capital goods companies are expected to trade in a narrow range next week due to a
lack of significant triggers for the sector in the near term. The next trigger will be the Apr-Jun
earnings of companies, as the goods and services tax rollout has been largely factored in. The GST
Council has placed all capital and industrial goods under the 18% tax slab. The sector heavyweight Larsen & Toubro is likely to see a slight upside of 1,720 rupees, after news that the engineering behemoth has shown interest in re-developing railway stations, which will be offered in auctions by the government. The first revamped station under the plan is likely to come up by the end of 2018. By the end of 2020, the plan is to have 400 stations redeveloped, mostly by private sector companies.
Shares of Bharat Heavy Electricals are seen weak due to slim chances of an uptick in demand for
new power plants in the near- to mid-term. We believe the company's stock is trading at reasonable
valuation. Market participants would also keep an eye on the Index of Industrial Production for May
to be released by the Central Statistics Office post trading hours on Wednesday.
Source : Cogencis Information Services Ltd.
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Capital Goods Stocks for the week – 10 to 14.07.2017
( www.rupeedesk.in )
The shares of capital goods companies are expected to trade in a narrow range next week due to a
lack of significant triggers for the sector in the near term. The next trigger will be the Apr-Jun
earnings of companies, as the goods and services tax rollout has been largely factored in. The GST
Council has placed all capital and industrial goods under the 18% tax slab. The sector heavyweight Larsen & Toubro is likely to see a slight upside of 1,720 rupees, after news that the engineering behemoth has shown interest in re-developing railway stations, which will be offered in auctions by the government. The first revamped station under the plan is likely to come up by the end of 2018. By the end of 2020, the plan is to have 400 stations redeveloped, mostly by private sector companies.
Shares of Bharat Heavy Electricals are seen weak due to slim chances of an uptick in demand for
new power plants in the near- to mid-term. We believe the company's stock is trading at reasonable
valuation. Market participants would also keep an eye on the Index of Industrial Production for May
to be released by the Central Statistics Office post trading hours on Wednesday.
Source : Cogencis Information Services Ltd.
