Capital Goods Stocks Outlook for the week – 06 to 10.02.2017
Capital Goods Stocks Outlook for the week – 06 to 10.02.2017
( www.rupeedesk.in )
Stocks of capital goods companies are expected to gain in next week, riding on higher allocation for infrastructure development and defence in the Union Budget for 2017-18 (Apr-Mar). This week, stocks of major capital goods companies rose 1-4%, with the BSE Capital Goods index gaining 2.0%. The Budget was presented on Wednesday. The increased budgetary support for infrastructure, particularly the roads and railways will be a big positive for the sector. Finance Minister Arun Jaitley allocated a record 3.96 trln rupees for infrastructure sector in the Union Budget for 2017-18 (Apr-Mar), while the Indian Railways' got a capital expenditure of 1.31 trln rupees for the period. Jaitley also proposed spending 2.74 trln rupees on defence, excluding pensions, in the fiscal year starting Apr 1. Sector bellwether Larsen & Toubro is likely to rise to 1,500 rupees in the upcoming week, despite the company reporting its slowest sales growth in 28 quarters during Oct-Dec, and slashing revenue and order inflow growth guidance. L&T stands to gain from the Budget announcements in the near to medium term. Apart from the infrastructure push, the new metro rail policy will boost its order inflows. State-owned Bharat Heavy Electricals could see an upside next week on the pro-growth initiatives laid out in the Budget. Stocks of Cummins India might extend gains in the next few weeks, after the company reported an 11.3% year-onyear rise in net profit to 1.98 bln rupees for Oct-Dec. Net sales during the quarter rose 18.4% to 14.22 bln rupees. Market participants would also keep an eye on the Oct-Dec earnings of major capital goods companies next week, including BHEL on Feb 7, Thermax and Siemens on Feb 8 and Crompton Greaves the next day.
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Capital Goods Stocks Outlook for the week – 06 to 10.02.2017
( www.rupeedesk.in )
Stocks of capital goods companies are expected to gain in next week, riding on higher allocation for infrastructure development and defence in the Union Budget for 2017-18 (Apr-Mar). This week, stocks of major capital goods companies rose 1-4%, with the BSE Capital Goods index gaining 2.0%. The Budget was presented on Wednesday. The increased budgetary support for infrastructure, particularly the roads and railways will be a big positive for the sector. Finance Minister Arun Jaitley allocated a record 3.96 trln rupees for infrastructure sector in the Union Budget for 2017-18 (Apr-Mar), while the Indian Railways' got a capital expenditure of 1.31 trln rupees for the period. Jaitley also proposed spending 2.74 trln rupees on defence, excluding pensions, in the fiscal year starting Apr 1. Sector bellwether Larsen & Toubro is likely to rise to 1,500 rupees in the upcoming week, despite the company reporting its slowest sales growth in 28 quarters during Oct-Dec, and slashing revenue and order inflow growth guidance. L&T stands to gain from the Budget announcements in the near to medium term. Apart from the infrastructure push, the new metro rail policy will boost its order inflows. State-owned Bharat Heavy Electricals could see an upside next week on the pro-growth initiatives laid out in the Budget. Stocks of Cummins India might extend gains in the next few weeks, after the company reported an 11.3% year-onyear rise in net profit to 1.98 bln rupees for Oct-Dec. Net sales during the quarter rose 18.4% to 14.22 bln rupees. Market participants would also keep an eye on the Oct-Dec earnings of major capital goods companies next week, including BHEL on Feb 7, Thermax and Siemens on Feb 8 and Crompton Greaves the next day.
