Stocks of most capital goods and engineering companies are seen trading with a positive bias next week, riding on the back of hopes that the government will announce some reforms for power sector. Power sector is one of the largest contributors to capital goods companies' order book. It has been widely reported in the media that the Cabinet would meet next week to discuss financial debt restructuring for debt-ridden state electricity boards.
Buoyed by hopes of reform measures, capital goods and engineering stocks ended up 3-8% on the National Stock Exchange yesterday. Bharat Heavy Electricals Ltd gained 7.5%, while Larsen & Toubro Ltd ended up over 4%. Larsen & Toubro Ltd yesterday hit a fresh 52-week high on the BSE's 50-scrip Sensex.
Bharat Heavy Electricals is likely to sail through safely without being majorly impacted by the ongoing coal mine controversy and subsequent review by the inter-ministerial group for coal block de-allocation.
