May see uptick in investment cycle post elections: Arindam Ghosh, BlackRidge Capital Advisors

In a chat with ET Now, Arindam Ghosh – CEO, BlackRidge Capital Advisors, shares his views on the capital goods space. Excerpt:

ET Now: Capital good stocks are doing well and within capital good names like ABB, Thermax, Crompton, Voltas, largely machinery stocks have managed to buck the trend, any special reason why machinery stocks are doing well?

Arindam Ghosh: Capital goods as a pack have been pinning their hopes on the fact that we are going to see uptick in the investment cycle and capex once we have a new government.

Many of these companies which have low debt on their books are looking quite well placed and they have lined up significant amount of capex. So, people are waiting for stability in terms of government formation and probably the positions are being taken from two to three year kind of perspective.