Capital Goods Stocks Outlook for the week – 08 to 12.06.2015
(To
trade in narrow range)
After
having relatively underperformed this week, shares of most capital goods
companies are expected to trade in a narrow range next week, in the absence of
any major positive triggers. After sharp losses this week, the outlook for the
market is bleak, but view for the capital goods sector remains slightly
positive as it has outperformed the broad market.
The
week started off on a negative note for the market, with the Reserve Bank of
India giving a hawkish commentary on inflation and growth, followed by the
India Meteorological Department that revised down its southwest monsoon
rainfall forecast. Further, Greece failed to strike a deal with its Creditors
to receive bailout funds.
Although
key indices registered losses, index major Larsen & Toubro outperformed and
clocked nearly 2% weekly gains on the back of the engineering major's strong
earnings outlook for the current financial year.
