 "Capital goods stocks in focus; Thermax surges over 5%")
Shares of capital goods companies continued their upward march with the S&P BSE Capital Goods index hitting two-month high on the Bombay Stock Exchange (BSE).
Larsen & Toubro (L&T), Thermax, Crompton Greaves, VA Tech Wabag, Lakshmi Machine Works, Sadbhav Engineering and SKF India were up 2% to 7% on the BSE.
At 1342 hours, S&P BSE Capital Goods index, the largest gainer among sectoral indices, was up 1.8% or 309 points at 17,552 compared to 0.37% rise in the S&P BSE Sensex.
Since June 15, the capital goods index rallied 6% after the April industrial output numbers beat estimates. The benchmark index gained 5% during the same period.
Industrial output growth, as measured by index of industrial production (IIP) rose a more-than-expected 4.1% in April as compared to 2.5% in March.
Growth in overall IIP was supported by the manufacturing sector that grew by 5.1% versus 2.8% in March. In addition, according to use based classification, capital goods rose by 11.1% year-on-year, followed by consumer goods (3.1%), and basic goods (2.8%).
According to CRISIL Research, the 3 month moving average of the IIP series, which is much less volatile, is showing improving growth. In addition, the trend in both consumer oriented and investment oriented sectors is steadily climbing up. In addition, the uptick in the steel sub-index growth in April signals that construction activity might pick-up in Q1 FY16.
Among the individual stocks, Thermax has rallied 7% to Rs 1,063 on the BSE on back of heavy volumes. It hit a high of Rs 1,080 and seen a combined 168,096 shares changed hands on the counter on the BSE and NSE.
L&T has moved higher by 2.2% to Rs 1,770, extending its 4.3% gain in past six trading sessions. Crompton Greaves was up 4% at Rs 171, while VA Tech Wabag up 3% at Rs 738 on the BSE.
Larsen & Toubro (L&T), Thermax, Crompton Greaves, VA Tech Wabag, Lakshmi Machine Works, Sadbhav Engineering and SKF India were up 2% to 7% on the BSE.
At 1342 hours, S&P BSE Capital Goods index, the largest gainer among sectoral indices, was up 1.8% or 309 points at 17,552 compared to 0.37% rise in the S&P BSE Sensex.
Since June 15, the capital goods index rallied 6% after the April industrial output numbers beat estimates. The benchmark index gained 5% during the same period.
Industrial output growth, as measured by index of industrial production (IIP) rose a more-than-expected 4.1% in April as compared to 2.5% in March.
Growth in overall IIP was supported by the manufacturing sector that grew by 5.1% versus 2.8% in March. In addition, according to use based classification, capital goods rose by 11.1% year-on-year, followed by consumer goods (3.1%), and basic goods (2.8%).
According to CRISIL Research, the 3 month moving average of the IIP series, which is much less volatile, is showing improving growth. In addition, the trend in both consumer oriented and investment oriented sectors is steadily climbing up. In addition, the uptick in the steel sub-index growth in April signals that construction activity might pick-up in Q1 FY16.
Among the individual stocks, Thermax has rallied 7% to Rs 1,063 on the BSE on back of heavy volumes. It hit a high of Rs 1,080 and seen a combined 168,096 shares changed hands on the counter on the BSE and NSE.
L&T has moved higher by 2.2% to Rs 1,770, extending its 4.3% gain in past six trading sessions. Crompton Greaves was up 4% at Rs 171, while VA Tech Wabag up 3% at Rs 738 on the BSE.