BSE Bankex, Capital goods, Consumer durables index hit 52-week highs

BSE's three sectoral indices, Bankex, Capital Goods and Consumer Durable index hit their respective 52-week highs after the benchmark S&P BSE Sensex rally an over 2% on Tuesday in intra-day trade.

At 12:53 pm; the S&P BSE Capital Goods index, the largest gainer among sectoral indices, was up 2.9% at 15,873. The index hit an intra-day high of 15,931.58, surpasses its previous high of 15,793.2 touched on October 23, 2015.

Larsen & Toubro (L&T), VA Tech Wabag, CG Power and Industrial Solutions, NBCC (India), Bharat Heavy Electricals (BHEL) and Siemens from the index were up in the range of 2%-4% on the BSE.

With the decisive mandate for the BJP in UP and expectations of a further push to reforms, investors could increase their exposure to stocks and benefit from the rally which will unfold going ahead, believe analysts. CLICK HERE TO READ FULL REPORT

Analysts at Anand Rathi highlight that irrigation projects and Ganga water purification plans would benefit companies such as Praj Industries, Thermax, VA Tech Wabag, ITD Cementation, Kirloskar Brothers as well as engineering, procurement and construction players.

VIP Industries, Bajaj Electricals, Titan Company and Whirlpool of India from the consumer durable index and ICICI Bank, YES Bank, Federal Bank, Indian Bank, Jammu & Kashmir Bank, Union Bank of India and Karnataka Bank from the banking have rallied by up to 12% in intra-day trade.

VIP Industries has zoomed 12% to Rs 177, its fresh 52-week high on the BSE. The stock rallied 28% in past one month after the company reported 49% year on year jump in its consolidated net profit at Rs 15.53 crore in October-December 2016 quarter.

Going ahead, analyst at Angel Broking expect VIP to report a top-line CAGR of around 12% over FY16-19E to around Rs 1,693 crore on the back of diversified product portfolio (catering to customers from all segments), and strong distribution network with high brand recall. Further, GST implementation will also boost the volume of branded sales.

“I think that a move towards GST, a move towards white money and a move towards banking system all this helps branded goods in relation to unbranded goods. Small businesses are expected to start paying taxes and prices of their unbranded luggage will go up a bit and as the price gap between unbranded and branded reduces, the branded luggage becomes relatively more attractive” said Radhika Piramal, CEO, VIP Industries, Q2FY17 Conference Call.

Index Open High Low Current Value Prev. Close Ch (%) 52 Wk High 52 WK Low
S&P BSE BANKEX 24147.74 24293.87 24050.33 24124.81 23625.66 2.11 24293.87 17264.26
S&P BSE CAPITAL GOODS 15656.79 15931.58 15656.79 15873.15 15429.02 2.88 15931.58 12114.75
S&P BSE CONSUMER DURABLES 14046.31 14151.07 13982.22 14092.42 13889.54 1.46 14151.07 10502.14
S&P BSE SENSEX 29437.23 29561.93 29356.05 29407.43 28946.23 1.59 29561.93 24354.55
Current Value at 12:53 pm.                

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