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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 next week, Investors will keenly track the Index for Industrial Production data for September, to be released Monday.
Lower factory output indicates a slowdown in growth in the economy, which may compel the Reserve Bank of India to cut the repo rate, the rate at which it lends to commercial banks. High interest costs, paucity of orders, and aggressive competition have been weighing down on the capital goods and engineering sector for a while now. Stocks of Suzlon Energy may fall Monday as the company posted a consolidated net loss of 8.08 bln rupee for Jul-Sep as against estimates of 4.18 bln rupees, due to continued pressure of high interest rates and poor operational performance.
