GOLDEN RULES FOR TRADING

Capital Goods Stocks Outlook for the week – 11 to 15.07.2016

Capital Goods Stocks Outlook for the week – 11 to 15.07.2016
(Seen trade with range-bound as earning issue)

Next week, stocks of capital goods companies are expected to trade in a range and on a cautious note,
as announcement of corporate earnings for Apr-Jun begins, and in the absence of any other major
trigger.

All eyes will be on management commentary and the outlook on key issues, as companies start
detailing their June quarter earnings in the second half of July. Not much upside is seen in the stocks
of major capital goods companies in the coming week.

Sector bellwether Larsen & Toubro is seen positive in the near term, with news of subsidiary L&T
Infotech's initial public offering on Jul 11 almost factored in by the market.

Stocks of state-owned Bharat Heavy Electricals Ltd might see a downside, after JP Morgan said there
was "high probability" that the company would see its order inflow fall in 2016-17 (Apr-Mar). In the
last six sessions, the stock has risen more than 19%, before hitting a three-month high of 141.95
rupees.