Capital Goods index hits the roof
Bangalore: With rupee values touching an 18-month high against the dollar last week, capital goods, consumer durables, metal and realty stocks witnessed positive response among consumers. Capital goods index emerged as top gainer with a gain of five percent. The index traded in the range of 4237 - 4286 points. As on April 6, the market value of capital goods index was 
3,69,486.65 crore.
The rupee rallied to an 18-month high of 44.89 against the greenback, affecting the profit margin of IT firms as the sector derives a lion's share of revenue from exports, especially to the U.S. The IT index declined 159.41 points, or 2.89 percent.
Last week FICCI had announced that the government should earmark 1,500 crore for modernization of the capital goods sector and development of industrial parks for them to reduce India's dependence on imports. It also said that the development of capital goods parks is required to overcome infrastructure deficiencies faced by Indian capital goods sector.
India's capital goods imports have increased by about five times in the last six years to $30 billion in 2008-09 from $6.5 billion in 2003-04. The main reason for lower productivity of capital goods sector in India is lack of availability of latest technology.
It also said that there is a need for setting up common facility centres in public-private partnership mode for segments of capital goods sector, which do not have major R&D, testing and other common infrastructure facilities.
3,69,486.65 crore.
The rupee rallied to an 18-month high of 44.89 against the greenback, affecting the profit margin of IT firms as the sector derives a lion's share of revenue from exports, especially to the U.S. The IT index declined 159.41 points, or 2.89 percent.
Last week FICCI had announced that the government should earmark 1,500 crore for modernization of the capital goods sector and development of industrial parks for them to reduce India's dependence on imports. It also said that the development of capital goods parks is required to overcome infrastructure deficiencies faced by Indian capital goods sector.
India's capital goods imports have increased by about five times in the last six years to $30 billion in 2008-09 from $6.5 billion in 2003-04. The main reason for lower productivity of capital goods sector in India is lack of availability of latest technology.
It also said that there is a need for setting up common facility centres in public-private partnership mode for segments of capital goods sector, which do not have major R&D, testing and other common infrastructure facilities.