Capital goods shares in demand; Index soars over 300 points

L&T, Crompton Greaves, Siemens, Alstom T&D, SKF India Lakshmi Machine Works and Suzlon Energy are up 2-5% on BSE.

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Shares of capital goods companies are in demand and trading higher by up to 5% on the bourses after Finance Minister Arun Jaitley on Saturday predicted faster growth in the coming months.

Larsen and Toubro (L&T), Crompton Greaves, Lakshmi Machine Works, Siemens, Alstom T&D, SKF India and Suzlon Energy are up 2-5% on the Bombay Stock Exchange (BSE).

The BSE S&P Capital Goods index, the largest gainer among sectoral indices, was up 2.3% or 341 points at 15,254 points compared to 0.75% or 199 points gain at 26,845 in benchmark S&P BSE Sensex at 1130 hours.

The finance ministry expressed hope growth would pick up further in the remaining three quarters. “With the improvement witnessed in some important sectors, including manufacturing and exports, along with the measures taken by the government, the economy can be expected to show further improvement in the remaining part of the year,” it said.

Meanwhile, for the quarter ended June this year, India’s economy grew at a nine-quarter high of 5.7%, compared with 4.6% in the previous quarter. For the June quarter of 2013-14, gross domestic product (GDP) had increased 4.7%.

Among the individual stocks, Lakshmi Machine Works has surged 5% to Rs 4,107, followed by Crompton Greaves (4% at Rs 203), L&T and Alstom T&D (up 3% each at Rs 1,573 and Rs 339 respectively) and Siemens (up 2% at Rs 810).