Capital Goods Stocks Outlook For The Week - 03 to 06.10.2017
Capital Goods Stocks Outlook For The Week - 03 to 06.10.2017
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Stocks of major capital goods companies are seen falling this week in the backdrop of a slowdown in the Indian economy and a dearth of large orders. However, stocks of Thermax Ltd and Bharat Heavy Electricals Ltd are expected to consolidate this week. Capital formation is not happening in the sector and despite excess capacity, utilisation remains subdued. Market sentiment for the capital goods segment depends heavily on government's decision to come up with a new industrial policy (Capital Goods Policy). In the long term, however, we remain positive on shares of BHEL, Siemens Ltd, ABB India Ltd and L&T as the economy is expected to recover after months of disruptions and CG Power and Industrial Solutions Ltd are weak when compared on year basis.. Stocks in the sector can also rally on the back of increased spending by the government in the sector. Order books of most thermal power plant manufacturers including BHEL, Thermax PSU refiners may rise marginally . Diversification is expected from these companies to increase the order book size. Stocks of BHEL are seen trading sideways after the company announced a stock split in the ratio of 1:2 on Wednesday. Stocks of Pune-based Thermax have been on a sort of a roller coaster for the last few weeks. Stocks of the company rose 8% this week after falling nearly 8% last week and gaining 9% the week before that. The company's stocks are expected to find stability around the 950 rupees level in the coming weeks. CG Power's stocks are seen trading in a narrow range in this week.
Source : Cogencis Information Services Ltd.
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( www.rupeedesk.in )
Stocks of major capital goods companies are seen falling this week in the backdrop of a slowdown in the Indian economy and a dearth of large orders. However, stocks of Thermax Ltd and Bharat Heavy Electricals Ltd are expected to consolidate this week. Capital formation is not happening in the sector and despite excess capacity, utilisation remains subdued. Market sentiment for the capital goods segment depends heavily on government's decision to come up with a new industrial policy (Capital Goods Policy). In the long term, however, we remain positive on shares of BHEL, Siemens Ltd, ABB India Ltd and L&T as the economy is expected to recover after months of disruptions and CG Power and Industrial Solutions Ltd are weak when compared on year basis.. Stocks in the sector can also rally on the back of increased spending by the government in the sector. Order books of most thermal power plant manufacturers including BHEL, Thermax PSU refiners may rise marginally . Diversification is expected from these companies to increase the order book size. Stocks of BHEL are seen trading sideways after the company announced a stock split in the ratio of 1:2 on Wednesday. Stocks of Pune-based Thermax have been on a sort of a roller coaster for the last few weeks. Stocks of the company rose 8% this week after falling nearly 8% last week and gaining 9% the week before that. The company's stocks are expected to find stability around the 950 rupees level in the coming weeks. CG Power's stocks are seen trading in a narrow range in this week.
Bhel - Down
L&T - Down
ABB - Down
Adaniports - Up
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Source : Cogencis Information Services Ltd.
