Shares of capital goods companies are in demand with the Bombay Stock Exchange (BSE) Capital Goods index trading nears to its 52-week high.
At 1340 hours, ABB India, VA Tech Wabag, IL&FS Transportation Networks, Alstom India and Thermax are trading higher more than 5% each, while Bharat Electronics, FAG Bearings, Suzlon Energy and Siemens are up 3% each.
The S&P BSE Capital goods index, the largest gainer among the sectoral indices, is up 1.2% or 127 points at 10,600 points, as compared to 0.38% or 70 points gain in benchmark S&P BSE Sensex. The capital goods index hits high of 10,615 in intra-day trades, is 53 points away from its 52-week high of 10,668 touched on December 9, 2013.
Since February 17, the capital goods index has rallied 12.5% after Finance Minister P Chidambaram, in the Interim Budget for 2014-15 fiscal, has reduced the excise duty on capital goods has been reduced from 12% to 10%. The benchmark index has gained 4% during the same period.
Analyst at Sharekhan says that, currently there are hopes built in investors’ mind that a new government would kick-start the investment cycle, boosting the valuation and price of several stocks.
Among the individual stocks, Alstom India and ABB has surged 7% each at Rs 352 and Rs 785 respectively, while IL&FS Transportation Networks, VA Tech Wabag and Thermax are up 5% each on the BSE.
At 1340 hours, ABB India, VA Tech Wabag, IL&FS Transportation Networks, Alstom India and Thermax are trading higher more than 5% each, while Bharat Electronics, FAG Bearings, Suzlon Energy and Siemens are up 3% each.
The S&P BSE Capital goods index, the largest gainer among the sectoral indices, is up 1.2% or 127 points at 10,600 points, as compared to 0.38% or 70 points gain in benchmark S&P BSE Sensex. The capital goods index hits high of 10,615 in intra-day trades, is 53 points away from its 52-week high of 10,668 touched on December 9, 2013.
Since February 17, the capital goods index has rallied 12.5% after Finance Minister P Chidambaram, in the Interim Budget for 2014-15 fiscal, has reduced the excise duty on capital goods has been reduced from 12% to 10%. The benchmark index has gained 4% during the same period.
Analyst at Sharekhan says that, currently there are hopes built in investors’ mind that a new government would kick-start the investment cycle, boosting the valuation and price of several stocks.
Among the individual stocks, Alstom India and ABB has surged 7% each at Rs 352 and Rs 785 respectively, while IL&FS Transportation Networks, VA Tech Wabag and Thermax are up 5% each on the BSE.
