The new rules target toys, electronic goods, machinery, food processing, construction and chemicals, sectors dominated by China, and come amid greater scrutiny of mainland firms looking to enter India's multi-billion dollar power transmission and telecoms business.
Motilal Oswal has come out with its sector report on Capital Goods dated October 06, 2017. Festive season sales below expectations.
Motilal Oswal has come out with its sector report on Capital Goods dated September 13, 2017. Revival from FY18 as project sanctions by banks surge 92% YoY.
Some of the cap goods companies have the potential to deliver 20-25 percent returns over medium to long-term, said Dilip Bhat of Prabhudas Lilladher.
Net Sales are expected to increase by 41 percent Q-o-Q (up 11.8 percent Y-o-Y) to Rs 37072.9 crore, according to Motilal Oswal. Larsen & Toubro to report net profit at 2397.4 crore up 146.5% quarter-on-quarter.
Net Sales are expected to increase by 63.5 percent Q-o-Q (up 2.2 percent Y-o-Y) to Rs 1930.5 crore, according to Motilal Oswal. Voltas to report net profit at 141.6 crore up 73.7% quarter-on-quarter.
Net Sales are expected to increase by 16.6 percent Q-o-Q (down 3.9 percent Y-o-Y) to Rs 2675 crore, according to Motilal Oswal. Siemens to report net profit at 255.2 crore up 59.5% quarter-on-quarter.
Net Sales are expected to increase by 104.7 percent Q-o-Q (up 29.4 percent Y-o-Y) to Rs 12946.1 crore, according to Motilal Oswal. BHEL to report net profit at 1075.6 crore up 1049.8% quarter-on-quarter.
Net Sales are expected to increase by 87.2 percent Q-o-Q (up 21.5 percent Y-o-Y) to Rs 3906.6 crore, according to Motilal Oswal. Bharat Electronics to report net profit at 800.1 crore up 114.2% quarter-on-quarter.
Fund house’s MD, Nilesh Shah, recommends that investors must invest in the market through SIPs as the time to make easy money is now over.
The industrial output data in the month of January shows that there is a rebound from the contractions in the month of December. Capital goods output gave a positive surprise at 10.7 percent. According to analyst Anubhuti Sahay, the drag down in cables and wires has faded which has pushed the capital goods number on the higher side.
The Commerce Department said on Monday that non-defense capital goods orders excluding aircraft, a closely watched proxy for business spending plans, dropped 0.4 percent after an upwardly revised 1.1 percent increase in December.
The stock market has digested most of the news post demonetisation and emerged relatively unscathed, says S Krishna Kumar, CIO Equity at Sundaram Mutual Fund.
In an interview to CNBC-TV18, Vineet Agarwal, MD of Transport Corporation of India said that dividend income from group companies aided other income.
The cash crunch has postponed the recovery in earnings from FY17 to the first quarter of FY18 as the uncertainty is likely to cloud the domestic potential in the near term, says Vinay Paharia, Equity Fund Manager at Invesco Mutual Fund.
Speaking to CNBC-TV18 Jyotivardhan Jaipuria, Founder & MD of Veda Investment Managers said that the pain from demonetisation will continue for three more months. â€œWe are still 8-12 weeks away from normal.â€
Other data on Thursday showed the economy grew faster than previously estimated in the third quarter, notching its quickest pace in two years. And while the number of Americans applying for unemployment aid hit a six-month high last week, it remained below a level that is associated with labor market strength.
Around Rs 100 crore have been disbursed so far by the government as grant under the Scheme for Enhancement of Competitiveness of the Capital Goods Sector, a senior government official said today.
The market will be led by financial, capital goods and utilities sector for the next few years. He does not see the IT sector turning around anytime soon.
Most analysts think business in India has most likely improved in the last three month but there may be challenges this quarter when it comes to recovery in sectors like capital goods, construction and engineering.
India‘s factory output fell (-)0.7 percent in August, the second successive monthly decline, but revival hopes floated on festive season sales, pay hike for government employees and greater rural spending on the back of good summer rains.
Gautam Shah of JM Financial is of the view that one may see 5-7 percent upside in capital goods stocks.
According to the findings, inverted duty structure exists for products like blow-moulding machines, pressure vessels, parts of heat exchangers and nuclear reactors, boilers, their components and the like.
According to the global financial services major, the monthly investment indicator improved smartly in February- March 2016 to a five-year high level on the back of improvements in intermediate goods like diesel, power, cement, bitumen, capital goods imports etc as well as good prints on indicators of movements of goods.
A government-appointed panel has suggested a standard goods and services tax (GST) rate of 17-18 percent but Indian states want a higher level.