With an astounding 77% surge in the past one year, the S&P BSE Capital Goods index has ignited discussions regarding the sustainability of returns and potential corrections in the industrials sector.
What added fuel to the fire was that foreign institutional investor (FII) inflows into the sector showed moderation, declining from $1.14 billion in August 2023 to $456 million in March 2024, as per National Securities Depository Ltd (NSDL) data. Even mutual fund holdings in several capital goods stocks have moderated, showed data compiled by Abhilash Pagaria, head at Nuvama Alternative & Quantitative Research. He highlighted that the value of buying by mutual funds in industrial stocks such as Schaeffler India Ltd, Bharat Heavy Electricals Ltd, Cummins Ltd, Kalpataru Projects International Ltd, Praj Industries Ltd, Siemens Ltd, Thermax Ltd, Apar Industries Ltd, and ABB India Ltd, has come down dramatically.
Having said that, even as a multitude of stocks in the capital goods sector have experienced significant growth over the last couple of years, fund managers remain confident that there is still untapped growth potential in the space.
Esta historia es de la edición April 09, 2024 de Mint Mumbai.
Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 9,000 revistas y periódicos.
Ya eres suscriptor ? Conectar
Esta historia es de la edición April 09, 2024 de Mint Mumbai.
Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 9,000 revistas y periódicos.
Ya eres suscriptor? Conectar
GDP growth falters in Q2, hopes pinned on 2nd half
GDP growth of 5.4% was the lowest in nearly two years, lower than estimates
Aster DM merges with Quality Care in $5-billion deal
Bengaluru-based Aster DM Healthcare on Friday announced a merger with Blackstone-backed Quality Care India Ltd (QCIL) in a deal that will value the combined entity at $5.08 billion (₹43,000 crore).
AIFs, equities pip realty in family office funding
What's Ahead for Family Offices?
Defence contracts emerge as key biz for telecom infra makers
India's push for local manufacturing has prised open a new business frontier for domestic telecom equipment manufacturers.
HUL turns to high-growth segments to lift demand
Premium is the watchword for packaged consumer goods major Hindustan Unilever Ltd (HUL), as it unveiled a new strategy on Friday to ride on an expected rise in household income and increasing consumer preference for more expensive brands and products.
Russia's war economy shows new cracks after ruble plunges
The Russian economy, surprisingly resilient through two-plus years of war and sanctions, has suddenly begun to show serious strains.
Colgate making right moves, but valuation a concern
Colgate Palmolive (India) Ltd has had a good run in recent quarters and continues to make efforts to boost growth.
Kalyani family's wealth war takes a fresh turn
Gaurishankar Kalyani has filed papers to back his claim that HUF exists
Zomato raises ₹8,500 crore via QIP
A big part of the proceeds is to be used to expand Zomato's quick commerce arm Blinkit
Fintech startup Klub halves workforce
Bengaluru-based financing startup Klub laid off about 60-70 employees in September and paused its commerce operations, according to multiple people aware of the developments.
