Capital Goods Stocks Outlook for the week – 31.08.2015 to
04.09.2015
(Seen
in range with negative bias)
Shares
of capital goods companies are seen range bound with a negative bias next week,
as macroeconomic
factors
are likely to dominate investor sentiment in the broader market.
With
global economic environment seen still reeling under the pressure of volatility
in China, and India's gross domestic product growth data for Apr-Jun, being
detailed on Monday, investors are expected to exercise caution.
Selling
pressure is likely to be high on companies in the capital goods sector as macro
economic
uncertainness
is likely to weigh. Most of these companies are dependent on the government for
booking
orders, as private sector capital expenditure is unlikely to return in the near
term.
Shares
of state-owned Bharat Heavy Electricals Ltd are seen week next week, while pick
up in road infrastructure ordering may see investors favouring sector major
Larsen & Toubro, as it has a strong exposure to government infrastructure
contracts.
Siemens'
scrip may witness some gains as well, as the company is seen in an advantageous
position with transformer and substation orders being floated by the government
in this sector.
