GOLDEN RULES FOR TRADING

Capital Good Stocks Outlook for the week – 12 to 16.10.2015 (Consolidated trading with negative bias)

Capital Good Stocks Outlook for the week – 12 to 16.10.2015
(Consolidated trading with negative bias)

Stocks of most capital goods companies are seen shedding some gains that they have accumulated over the last week on account of profit booking in the absence of any key sector-related or company-specific development.

However, stocks of sector major L&T are seen remaining firm as the high  exposure to construction and infrastructure segment is likely to shield the company from the sluggish order inflows and execution in the heavy industries segment.

Medium term investors may look at investing in shares of KEC International, Kalpataru Power Transmission, Alstom India and Cummins as short cycle capital goods makers are likely to see better times sooner than boiler-turbine-generator makers such as Bharat Heavy Electricals and Thermax.