Moneycontrol Bureau
The outlook for Indian industrials sector remains positive however, a ground-level pick-up is still awaited, says Religare. The research firm recently hosted a conference on the Indian industrials sector attended by nine companies including an industry expert.
The global slowdown and policy paralysis that prevailed in the last five years has hit the sector's growth hard. But with the new government in place, green shoots are beginning to appear on the macro-economic front and there is growing optimistic about revival of this sector.
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Based on the commentary from various managements, Religare is of the view that second half of FY15 should see order inflow traction in the power transmission, transportation infrastructure and water segments.
Also, the prospects for a pick-up in sales of short-cycle industrial goods like engines, pumps and compressors, are healthier compared to long-cycle businesses, it adds. Further, a recovery in long-cycle businesses is contingent on reforms across the infrastructure sector.
On specific stocks in this space, Religare recommends buying Voltas. It has a hold rating on L&T and KEC International.
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