 "BSE Capital Goods index hits 20-month high")
The S&P BSE Capital Goods index rallied more than 2%, hitting 20-month high, after a strong surge in stocks like ABB India, Siemens, Larsen & Toubro (L&T), CG Power and Industrial Solutions and GE T&D India.
At 2:31 pm; the S&P BSE Capital Goods index, the largest gainer among sectoral indices, was up 2.01% or 354 points at 17,995, as compared to 0.10% rise in the benchmark S&P BSE Sensex. The capital goods index hit an intra-day high of 18,040, its highest level since August 20, 2015.
ABB India has surged 14% to Rs 1,595 in intra-day trade after the company said it has posted a significant year-on-year (y-o-y) increase in orders booked in the first quarter of 2017 (Q1), driven by government initiatives and investments. The stock trading close to its all-time high of Rs 1,670, touched on November 19, 2007 in intra-day trade.
The stock of other capital goods companies such as CG Power and Industrial Solutions (up 9% at Rs 83.40), GE T&D India (9% at Rs 373) and Siemens (7% to Rs 1,447) too have rallied more than 5% each in intra-day trade on BSE.
According to analysts at SBICAP Securities, the present capex cycle will be fuelled by government investment, unlike the previous decade when participation by the private sector had been higher.
The government has cleared the NPA resolution package, and its implementation will be a major positive for future investments. This capex cycle will be led by new/emerging sectors such as railways, metros, renewable, roads and transmission & distribution. Companies with better capabilities across these sectors stand to gain, SBICAP Securities said in recent report.
At 2:31 pm; the S&P BSE Capital Goods index, the largest gainer among sectoral indices, was up 2.01% or 354 points at 17,995, as compared to 0.10% rise in the benchmark S&P BSE Sensex. The capital goods index hit an intra-day high of 18,040, its highest level since August 20, 2015.
ABB India has surged 14% to Rs 1,595 in intra-day trade after the company said it has posted a significant year-on-year (y-o-y) increase in orders booked in the first quarter of 2017 (Q1), driven by government initiatives and investments. The stock trading close to its all-time high of Rs 1,670, touched on November 19, 2007 in intra-day trade.
The stock of other capital goods companies such as CG Power and Industrial Solutions (up 9% at Rs 83.40), GE T&D India (9% at Rs 373) and Siemens (7% to Rs 1,447) too have rallied more than 5% each in intra-day trade on BSE.
According to analysts at SBICAP Securities, the present capex cycle will be fuelled by government investment, unlike the previous decade when participation by the private sector had been higher.
The government has cleared the NPA resolution package, and its implementation will be a major positive for future investments. This capex cycle will be led by new/emerging sectors such as railways, metros, renewable, roads and transmission & distribution. Companies with better capabilities across these sectors stand to gain, SBICAP Securities said in recent report.
| COMPANY | LATEST | PREV CLOSE | GAIN(%) |
| A B B | 1544.75 | 1401.75 | 10.2 |
| CG POWER & INDU. | 83.50 | 76.55 | 9.1 |
| GE T&D INDIA | 361.85 | 341.15 | 6.1 |
| SIEMENS | 1435.90 | 1355.65 | 5.9 |
| RELIANCE DEFENCE | 66.75 | 65.05 | 2.6 |
| CARBORUNDUM UNI. | 299.70 | 292.35 | 2.5 |
| LARSEN & TOUBRO | 1744.00 | 1708.65 | 2.1 |
One subscription. Two world-class reads.
Already subscribed? Log in
Subscribe to read the full story →*Subscribe to Business Standard digital and get complimentary access to The New York Times
Smart Quarterly
₹900
3 Months
₹300/Month
SAVE 25%
Smart Essential
₹2,700
1 Year
₹225/Month
SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months
Super Saver
₹3,900
2 Years
₹162/Month
Subscribe
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors
Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share
Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor
Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements
Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app
SAVE 25%