Capital Goods
Stocks Outlook for the week – 22 to 26.12.2014
( www.rupeedesk.in )
Stocks of capital goods companies
are likely to move in a narrow range next week, tracking the
broader market, due to subdued
participation of foreign investors and stock-specific action.
With a short-to-medium-term view,
we see Larsen & Toubro having a limited upside. The stock
price has corrected (last week)
on back of fall in the crude prices by 30% over the last six weeks
raised concerns of slowdown in
the infrastructure capex in the GCC (gulf) region.
L&T has major presence in
infrastructure space in the West Asia. However we believe that
strong pick-up in domestic
ordering has become all the more vital for the stock performance.
Investors are also seen positive
on state-owned power equipment maker Bharat Heavy
Electricals.
Crompton Greaves, too, may see
some upside early next week as the company announced, after market hours yesterday,
that it has received a 10-year operations and maintenance contract.
