Nomura warns about air conditioning sector in India

Fri Dec 21, 2012 10:50am IST

Employees work at an air conditioner production line in a factory at Jhajjar district in Haryana December 12, 2012. REUTERS/Mansi Thapliyal

Employees work at an air conditioner production line in a factory at Jhajjar district in Haryana December 12, 2012.

Credit: Reuters/Mansi Thapliyal

Related Topics

Stocks

   

Reuters Market Eye - Nomura says it has come away "with extremely negative takeaways" for the Indian heating, ventilation and air conditioning (HVAC) market after meeting with Blue Star's (BLUS.NS) executive in charge of the segment.

Nomura says Blue Star sees the HVAC market suffering from declining orders and intensifying competition, according to a note dated on Thursday.

As such, margins are under pressure, while customers are delaying payments, Nomura says citing Blue Star's comments.

Nomura expects the negative trends in HVAC to also impact Voltas (VOLT.NS), noting the air conditioner maker has recently been aggressive in the domestic market following a slowdown in new order inflow in the overseas markets.

Blue Star shares fall 1 percent, while Voltas shares are down 2.1 percent.

(Reporting Manoj Dharra)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

India-China Ties

REUTERS SHOWCASE

LIC on Markets

LIC on Markets

LIC chairman bullish on Indian markets  Full Article 

Infosys-Huawei

Infosys-Huawei

Infosys partners with China's Huawei for cloud-based services  Full Article 

Gold Outlook

Gold Outlook

Gold imports seen up, premiums likely to double on festive buying  Full Article 

Trade Dispute

Trade Dispute

U.S. to press India on trade row during Modi's Washington visit  Full Article 

Fed Policy Meet

Fed Policy Meet

Fed renews zero rate pledge, but hints at steeper rate hike path  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage