Capital goods stocks witness mixed trend after govt unveils draft national policy for the sector

Nine capital goods stocks rose 0.1% to 3.91% while five stocks lost 0.41% to 1.13% at 14:20 IST on BSE after the government has put out a draft national capital goods policy, seeking comments and suggestions on the various proposals.

Bharat Heavy Electricals (up 3.91%), Suzlon Energy (up 2.81%), Sadbhav Engineering (up 3.55%), ABB India (up 2.08%), Thermax (up 0.76%), Crompton Greaves (up 1.01%), Siemens (up 0.98%), L&T (up 0.72%) and Havells India (up 0.1%) edged higher. Beml (down 1.13%), Bharat Electronics (down 0.85%), Pipavav Defence and Offshore Engineering (down 0.94%), Laxmi Machine Works (down 0.62%) and Alstom T&D India (down 0.41%) edged lower.

Meanwhile, the S&P BSE Capital Goods index was up 144.26 points or 0.92% at 15,777.94, outperforming the Sensex which was down 44.44 points or 0.16% at 27,426.37.

The S&P BSE Capital Goods index had underperformed the market over the past one month till 23 October 2015, gaining 2.65% compared with Sensex's 6.38% rise. The index had also underperformed the market in past one quarter, sliding 15.14% as against Sensex's 3.17% fall.

The draft proposals released by the Department of Heavy Industry include incentivizing foreign direct investment in high technology manufacturing, increasing investment allowance to 25% from 15% over five years, interest subvention scheme for SMEs among others. The Department of Heavy Industry has sought comments on the draft policy by 31 October 2015.

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