Capital Goods Stocks Outlook for the week – 04 to 08.01.2016
(Seen
trading in a narrow range with a negative bias)
( www.rupeedesk.in )
Stocks
of most capital goods companies are seen trading in a narrow
range
with a negative bias next week as investors are seen adopting
the
sell-on-rise strategy.
Earnings
of Thermax Ltd are also expected to be down in Oct-Dec as
against
the same quarter a year ago, owing to the lack of fresh order
inflows
and low executions.
However,
most market participants expected Siemens Ltd to continue to
gain
in the next week and stocks of the company are seen touching a high
of
1,265 rupees. Order for companies making transmission lines and
substation
equipment are seen picking up, especially from Power Grid
Corp
of India Ltd.
Government
companies usually place more orders in Jan-Mar and the
union
government's trust on improvement of distribution and
transmission
network is likely to result into big gains for companies such
as
KEC International Ltd, Kalpataru Power Transmission Ltd, Siemens,
and
Alstom India Ltd.
Kalpataru
Power's management is upbeat on the ordering activity from
Power
Grid Corp and a few state electricity boards in the coming
quarters.