 "Capital goods shares gain post September IIP")
Shares of capital goods companies were trading higher by up to 3% in early morning deals after the production of capital goods increased 11.6% in September, against a decline of 6.6% a year ago and 9.7% in August this year, as per the Industrial Production data which was released yesterday.
Larsen and Toubro (L&T), Bharat Heavy Electricals Limited (BHEL), ABB India, Thermax, Alstom T&D India, Alstom India and Siemens were up 1-3% on the BSE.
S&P BSE Capital Goods index, the second largest gainer among sectoral indices, was up 0.69% or 109 points at 15,907 compared to 0.26% or 72 points decline the benchmark S&P BSE Sensex at 0958 hours. The capital goods index touched a high of 16,029 in intra-day trade so far.
The rate of industrial growth rebounded to 2.5% in September, compared with sub 1% levels in the previous two months. The Index of Industrial Production (IIP) had risen 0.5% each in July and August.
More than one percentage point of 2.5% IIP growth in September was accounted for by capital goods. Compared with the previous month, there would be a decline in industrial growth in September, if the capital goods segment were to be excluded, a Business Standard report suggests.
Larsen and Toubro (L&T), Bharat Heavy Electricals Limited (BHEL), ABB India, Thermax, Alstom T&D India, Alstom India and Siemens were up 1-3% on the BSE.
S&P BSE Capital Goods index, the second largest gainer among sectoral indices, was up 0.69% or 109 points at 15,907 compared to 0.26% or 72 points decline the benchmark S&P BSE Sensex at 0958 hours. The capital goods index touched a high of 16,029 in intra-day trade so far.
The rate of industrial growth rebounded to 2.5% in September, compared with sub 1% levels in the previous two months. The Index of Industrial Production (IIP) had risen 0.5% each in July and August.
More than one percentage point of 2.5% IIP growth in September was accounted for by capital goods. Compared with the previous month, there would be a decline in industrial growth in September, if the capital goods segment were to be excluded, a Business Standard report suggests.