Capital Goods Stocks Outlook for the week – 09 to 13.03.2015
( www.rupeedesk.in )
Trading
in stocks of most capital goods companies is seen in range with a negative bias
next
week
on account of profit booking as most stocks in this space have gained this week
following the spillover effect of a positive Union Budget.
Stocks
of major capital goods companies rose in the range of 2.35% to 6.00% in this
week and some amount of profit booking will be seen in the first half of next
week.
In
addition to this, the next week will see release of industrial production data,
which has been weak and uncertain for the past few months. Also, amendment to
the Budget and the passage of Land Acquisition Bill will have an impact on
capital goods companies.
However,
we are bullish on short-cycle product companies such as Voltas and Cummins, as
prebuying activity ahead of the summer season starting April is seen boosting
their Jan-Mar
revenues.
Market
participants will also eye developments on a possible stake sale of promoter
Avantha
Group
from the proposed demerged entity comprising the consumer durable business of
Crompton
Greaves. It has been reported that the promoter is in talks with private equity
firm
Advent
for sale of stake in the consumer business.
