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Trade in shares of most capital goods and engineering companies is likely to remain choppy, as investors will roll over positions to the December derivatives series ahead of the expiry of the November futures contract. Action is likely to remain stock-specific aid.
Stocks of sector major Siemens Ltd are likely to remain in focus as the company announced its Jul-Sep earnings just minutes before Indian stock markets closed yesterday. Siemens posted a net loss of 557.7 mln rupees in Jul-Sep as compared with a net profit of 1.78 bln rupees a year ago. Siemen's performance was affected by a one-time loss of 1.20 bln rupees due to an impairment charge stemming from its decision to scrap setting up a wind energy machinery manufacturing unit.
Shares of Praj Industries are also likely to remain in focus after the Cabinet Committee on Economic Affairs approved mandatory 5% blending of ethanol in
petrol with effect from Dec 1. Currently, oil marketing companies use an average of about 2% blend. Sugar mills may need to expand ethanol manufacturing capacities to meet the additional demand arising out of the mandatory norm, which may result in new orders for Praj Industries.
