Rally in capital goods stocks backed by fundamentals

Stocks like ABB India, Siemens, Cummins, BHEL have beaten Sensex's 8% gains with returns of 9-29%

Capital goods stocks are among the surprise outperformers so far in 2017. While the S&P BSE Sensex has returned over eight per cent gains since the start of the year, stocks such as ABB India, Siemens, Cummins India and BHEL have outperformed the index with returns of 9-29 per cent. GE T&D (formerly Alstom T&D) has gained by 3 per cent in this period. While the increasing preference to non-consumer oriented stocks has helped them perform better, the improving fundamentals as reflected in their recent quarterly earnings (except ABB, which is due on Thursday) indicates that the good ride may