GOLDEN RULES FOR TRADING

Capital Goods Stocks Outlook for the week – 08 to 12.08.2016 In a range with negative bias next week

Capital Goods Stocks Outlook for the week – 08 to 12.08.2016
In a range with negative bias next week

Stocks of capital goods companies are expected to trade within a range with a negative bias next
week owing to weak Apr-Jun earnings and bleak outlook on sector majors. Sector bellwether Larsen
& Toubro could see a near-11% fall from current levels in the next few weeks. Stocks of Cummins
India and Siemens may not see an upside in the forthcoming week, owing to lower than expected net
profit for the quarter ended June. Cummins India reported a 14.3% on-year fall in net profit at 1.8
bln rupees and a 4% on-year fall in net sales at 12.3 bln rupees in Apr-Jun. Siemens' net profit
declined 22.7% on year to 1.30 bln rupees in the June quarter, while net sales were up 10.4% yearon-
year at 25.63 bln rupees. Analysts had estimated the engineering company's net profit at 1.68 bln
rupees, same as that a year ago.