Capital Goods Stocks Outlook for the week – 17 to 21.04.2017
Capital Goods Stocks Outlook for the week – 17 to 21.04.2017
( www.rupeedesk.in )
Stocks of capital goods companies are likely to trade with a negative bias next week, owing to weak data on output in the sector, as well as a grim outlook for order inflows in the near term. Output of capital goods, considered a proxy for overall investment and consumption demand, contracted 3.4% in February, against growth of 10.9% the previous month, data release by the Central Statistics Office showed. In February 2016, output in the sector had contracted 9.3%. In the coming week, engineering behemoth Larsen & Toubro could trade in a narrow range. The stock had risen marginally after the company's arm Larsen & Toubro Construction won an order worth 52.50 bln rupees from Qatar earlier this week. However, prospects in the short term didn't look too encouraging. L&T's announced order flows for 4QFY17 (Jan-Mar) stand low at 155 bln rupees. Power generation orders continued to be muted, with no major orders announced by BHEL. However, prospects for Cummins India for the next few weeks look bright, owing to a surge in both domestic and export businesses.
Source : Cogencis Information Services Ltd.
Free Intraday Tips : Join Our Whatsapp No : 9841986753
Free Commodity Tips : Join our Whatsapp No : 9094047040
Capital Goods Stocks Outlook for the week – 17 to 21.04.2017
( www.rupeedesk.in )
Stocks of capital goods companies are likely to trade with a negative bias next week, owing to weak data on output in the sector, as well as a grim outlook for order inflows in the near term. Output of capital goods, considered a proxy for overall investment and consumption demand, contracted 3.4% in February, against growth of 10.9% the previous month, data release by the Central Statistics Office showed. In February 2016, output in the sector had contracted 9.3%. In the coming week, engineering behemoth Larsen & Toubro could trade in a narrow range. The stock had risen marginally after the company's arm Larsen & Toubro Construction won an order worth 52.50 bln rupees from Qatar earlier this week. However, prospects in the short term didn't look too encouraging. L&T's announced order flows for 4QFY17 (Jan-Mar) stand low at 155 bln rupees. Power generation orders continued to be muted, with no major orders announced by BHEL. However, prospects for Cummins India for the next few weeks look bright, owing to a surge in both domestic and export businesses.
Source : Cogencis Information Services Ltd.
