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Capital Goods stocks in demand
Mar 10, 2016

The fourth quarter of the fiscal year is typically a strong one for capital goods companies. Many of their clients rush to meet their ordering targets for the year, perking up inflows. But reports in business dailies suggest that this time around this may not be the case. 4QFY16 is seeing muted order inflows. Orders in this space are few, and big order are hard to come by.

Nonetheless, as today's chart of the day shows, may biggies from the capital goods space have seen their stocks move up quite sharply in the last ten days or so. In this short span of time since the budget, many of these have gone up by 15% to 18%.

The current scenario in the capital goods sector looks grim, no doubt. In such a scenario, such sharp moves in stock prices are perhaps indicative of the fact that it always makes sense to look beyond the short term noise and pick up fundamentally strong companies in the space whenever available at beaten down valuations.

Data Source: Economic Times

This Chart Of The Day was published in The 5 Minute WrapUp - Which Page Industries to Buy? Today's or Tomorrow's?

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