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Stocks of most capital goods and engineering companies are likely to track the market in the absence of any sector-specific news. Shares of companies detailing Jul-Sep earnings will remain in focus.
Cummins India, Reliance Infrastructure, and Suzlon Energy are some of the larger engineering and construction companies that will detail their second quarter earnings in the coming week. Shares of Crompton Greaves are likely to slump as the company reported higher-than-estimated fall in consolidated net profit at 420.5 mln rupees. Jul-Sep earnings detailed by most capital goods and engineering companies so far show that their revenues have declined from the year-ago period due to slower execution of orders, tepid order inflows, while high interest rates and aggressive competition has weighed on their profitability.
Net profit of BGR Energy Systems, which detailed its earnings on Thursday, fell 32% year on year to 347.3 mln rupees as revenue slumped 18% during the quarter. Most of these companies are facing execution delays as clients have deferred their projects due to uncertainties over land acquisition, fuel linkages, high interest costs, environmental and forest clearances.
