Capital Goods Stocks Outlook for the week - 28.08.2017 to 01.09.2017
Capital Goods Stocks Outlook for the week - 28.08.2017 to 01.09.2017
( www.rupeedesk.in )
The shares of most capital goods companies, barring Larsen and Toubro, are expected to fall in the forthcoming week, amid an overall dull outlook on the sector in the near- to midterm. Though the domestic demand could normalise as businesses adjust to the new tax regime, the order inflow outlook for heavy engineering segment is likely to remain weak. The sector heavyweight L&T is likely to rise next week, after positive management commentary at the company's annual general meeting earlier this week. Chief Executive Officer and Managing Director S.N. Subrahmanyan said the company was betting on the government's thrust on defence and infrastructure, and even if it gets orders for 25-30% of the planned central projects, L&T will have a fair amount of business on its hands. There is lack of demand for fresh thermal power generation capacities at present, and
therefore, order inflow outlook for BHEL appears weak over the near-term. CG Power &
Industrial Solutions is likely to gain in the long-term.
Source : Cogencis Information Services Ltd.
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Capital Goods Stocks Outlook for the week - 28.08.2017 to 01.09.2017
( www.rupeedesk.in )
The shares of most capital goods companies, barring Larsen and Toubro, are expected to fall in the forthcoming week, amid an overall dull outlook on the sector in the near- to midterm. Though the domestic demand could normalise as businesses adjust to the new tax regime, the order inflow outlook for heavy engineering segment is likely to remain weak. The sector heavyweight L&T is likely to rise next week, after positive management commentary at the company's annual general meeting earlier this week. Chief Executive Officer and Managing Director S.N. Subrahmanyan said the company was betting on the government's thrust on defence and infrastructure, and even if it gets orders for 25-30% of the planned central projects, L&T will have a fair amount of business on its hands. There is lack of demand for fresh thermal power generation capacities at present, and
therefore, order inflow outlook for BHEL appears weak over the near-term. CG Power &
Industrial Solutions is likely to gain in the long-term.
Source : Cogencis Information Services Ltd.
