Capital Goods Stocks Outlook for the week -02.12.2013 - 06.12. 2013
www.rupeedesk.in
Stocks of most capital goods and engineering companies are seen up next 
week tracking the markets, with investors particularly favouring stocks of 
Bharat Heavy Electricals and Larsen & Toubro. Despite the absence of any 
significant positive change in order flow, investors are betting on capital 
goods companies as sign of a more business-friendly political party coming 
to power in the upcoming elections are becoming apparent.

Capital Goods and engineering sector has been affected by policy 
bottlenecks in power sector, slowdown in public spending and sluggish 
industrial capital expenditure activity for almost two years now. Early 
sign of a change in government is largely one of the reasons that the 
stocks of the sector are seeing a revival. There is no real change in the 
actual demand scenario, but there is a perception among investors that a 
new government might fast-track stalled or slow-moving projects, which is 
likely to benefit capital goods and engineering companies.

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