Capital Goods Stocks Outlook for the week – 03 to 07.08.2015
Seen
down amid weak Apr-Jun results
( www.rupeedesk.in )
Stocks
of most capital goods companies are seen trading with a negative bias next week
as investor sentiment has been hurt by what has been a disappointing earnings
season so far. Capital goods major Larsen & Toubro yesterday reported a 21%
fall in its order inflow, it's the first such after 12 straight quarters of
reporting year-on-year improvements in order booking. The management of the company
has blamed the sluggish pace of awarding of orders and subdued investment
momentum in industrial capital expenditure as the primary reason for the
decline in order bookings.
Being
the sector bellwether, L&T management comments and order booking may raise
concerns
over
the performance of other mid-cap companies. Next week will see energy and
engineering
equipment
maker Siemens Ltd and engine-maker Cummins India reporting Apr-Jun earnings on
Wednesday
and Thursday, respectively. Weak auto sector demand and lowering of power
deficit could
see Cummins reporting a weak set of numbers for Apr-Jun.
