Capital Goods Stocks Outlook for the week – 22 to 26.02.2016
( www.rupeedesk.in )
Stocks
of capital goods companies are seen moving in a range, with a
positive
bias, as heavy price erosion in the past few weeks is likely to
result
in value buying across the sector.
The
Union Railway Budget, to be presented on Thursday, is expected to
unveil
sector-specific investment in terms of signalling and
electrification,
which may result in increased order visibility for many
capital
goods companies.
Higher
railway spending is a key positive for rail equipment suppliers
and
contractors, and it believes companies such as Siemens, Larsen &
Toubro,
and Crompton Greaves are expected to be the key beneficiaries
of
such announcements.
In
the current financial year ending March, public sector investment,
especially
in roads, railways and power distribution, has led to fresh order
inflows
for the capital goods sector. Project tenders from government
agencies in Apr-Dec have posted a substantial increase of 46% on year