Capital
Goods Stocks Outlook for the week – 12 to 16.01.2015
( www.rupeedesk.in )
Stocks of capital goods companies are seen extending losses, tracking
the wider market next week. Stocks of these companies are seen reacting to wider
macro-economic triggers in the absence of sector-specific action.
Investors will be eyeing the index of industrial production, Consumer
Price Index-based inflation and Wholesale Price Index-based inflation data due next week.
The Central Statistics Office will detail the Index of
IndustrialProduction for November on Monday. In case industrial output improves, stocks of sector
bellwether Larsen & Toubro and Thermax Ltd are expected to gain.
Investor sentiment towards the sector will be largely driven by
Oct-Dec earnings, which will be released in the next few weeks.
L&T has won an order worth 8.94 bln rupees from Oil and Natural
Gas Corp for development of a Vasai project in Mumbai on Dec 29. Cummins continues to be positive,
given the strong industrial potential due to rise in exports and improvement in market
position post changes in emission norms.
