Sensing huge opportunities from the Indo-US nuclear deal, in the wake of the go-ahead given to India by the Nuclear Suppliers Group (NSG) on Saturday, stocks of capital goods (CG), power, engineering procurement and construction (EPC) sectors were in the spotlight for the entire trading session on Monday.
These sectors witnessed a turnover growth of over 10% from the previous session.
The BSE CG index shot up by 443.42 points or 3.70% to end at 12,424.02 points while the BSE Power gained 88 points or 3.36% to close the day at 2,715.66 points on Monday.
Experts believe that uncertainty over the Indo-US nuclear deal had prompted these companies to put their plans on cold storage.
But with the cloud over the deal clearing, these stocks are likely to show some momentum. Given that it would still take a few years before the actual implementation of the technology for the nuclear power, it is too early for the markets to decide the fate of these stocks.
Subramanyam Pisupati, head of research, Ventura Securities, said, ?It is still premature to bet on these stocks. Though in the long run these are the sectors which are going to be on the beneficial side, the order books which were delayed due to lack of shortage of raw material would show some movements. Later, as the transfer of technology picks up, we may see other companies joining the rally. However, we are still looking at sometime before the markets start discounting these factors as investing in these stocks still looks dicey.?