*Capital Goods Stocks Outlook for the week (04-08.06.2012) * Stocks of capital goods and engineering companies are likely to trade with a negative bias next weak in the absence of any positive triggers. Most of the capital goods stocks are seen declining following disappointing gross domestic product growth data, released Thursday. Growth in the Indian economy moderated to 5.3% in the quarter ended March, the slowest pace in over seven years.
The country's GDP had grown 6.1% in Oct-Dec, and 9.2% a year ago. Overall growth in 2011-12 (Apr-Mar) fell to 6.5% from 8.4%. Poor performance of the industry sector hit economic growth. The industry sector grew 3.4% in 2011-12 as against 7.2% a year ago. During the year, mining sector contracted 0.9% from a growth of 5% a year ago. Growth in the manufacturing sector slowed to 2.5% in the year ended March from 7.6% a year ago, while construction sector grew 5.3% during the year, as against 8.0%. These sectors are the key contributors to capital goods and engineering companies' order books. In the past two trading sessions, the BSE Capital Goods index has declined nearly 4%. Even as overall sentiment towards heavy engineering segment continues to remain weak. L&T, with its sustainable competitive advantage, sound governance and broad based model, is available at a sensible price and in our view is the best investible idea in the Indian infrastructure sector By RUPEE DESK [email protected] -- You received this message because you are subscribed to the Google Groups "Kences1- Rupeedesk" group. To post to this group, send email to [email protected]. To unsubscribe from this group, send email to [email protected]. For more options, visit this group at http://groups.google.com/group/kences1?hl=en.
