Equity Alert: Capital goods shrs down 3-5%; rising inflation weighs

[K.Karthik Raja]

Equity Alert: Capital goods shrs down 3-5%; rising inflation weighs

Equity Alert: Capital goods shrs down 3-5%; rising inflation weighs
MUMBAI--2:30PM--Shares of capital goods companies were down 3-5%
on fears of
slowdown in order book inflows as rising inflation is likely to spur a
hike in
interest rates, which will delay companies' capacity expansion plans,
dealers
said.
"Rising inflation certainly poses a serious problem, but the
fundamentals
of our economy still remain intact. Orders might get delayed, but they
will
come," said an analyst at a domestic brokerage.
Larsen & Toubro Chief Financial Officer Y.M. Deostalee said he
does not
expect any significant slowdown in the capital goods sector due to
rising
inflation, CNBC TV-18 reported today.
L&T shares fell over 5% to 2,422 rupees, while ABB shares declined
4% to
890 rupees. Bharat Heavy Electricals was down 3% at 1,361 rupees and
Siemens
also slipped 3% to 437 rupees.
Dealers attributed today's fall to broad market weakness, saying
the
shares will bounce back once sentiment improves.
"These stocks are cheap valuation-wise for long-term investors.
L&T
shares are trading at its 10-month low. Some value buying is possible
in
BHEL and L&T if the market bounces back," a senior dealer at a
domestic
brokerage said.
L&T may find intraday support at 2,410 rupees, the dealer said.
------------------------------------------------------------------------------