BSE Capital goods index surges 5%, logs biggest intra-day gain in 19 months

Data Patterns, Bharat Electronics, CG Power and Industrial Solutions, Siemens Energy India and ABB India rallied in the range of 8 per cent to 14 per cent on the BSE in Wednesday's intra-day trade.

BSE Capital Goods index movement today

 

Shares of capital goods companies were in demand with the BSE Capital Goods index surging 5 per cent to 65,407.41 on the BSE in Wednesday’s intra-day trade, led by defence-related stocks. The index recorded its sharpest intra-day rally in the past 19 months. Earlier, on June 3, 2024, the BSE Capital Goods index had soared 6.4 per cent in intra-day trade.

 

At 02:47 PM; the BSE Capital Good index was up 5 per cent at 65,373.16, as compared to 0.29 per cent rise in the BSE Sensex.

 

Among individual stocks from the index, Data Patterns (India) zoomed 14 per cent to ₹2,607 on the BSE in Wednesday’s intra-day trade. Bharat Electronics (BEL) soared 10 per cent to ₹456, followed by CG Power and Industrial Solutions (9 per cent at ₹579.80), Siemens Energy India (₹2,365.70) and ABB India (₹5,077) rallied 8 per cent each and GE Vernova T&D India (₹2,905.20) and Mazagon Dock Shipbuilders (₹2,482) were up 7 per cent each. 

 

Cochin Shipyard, Hitachi Energy India, ZEN Technologies and Bharat Dynamics (BDL) were up in the range of 5 per cent to 6 per cent.

 

Why Capital Goods index rose nearly 5 per cent on Wednesday?

 

India and the European Union signed their first Security and Defence Partnership framework alongside the broader India-EU trade and strategic engagement, covering maritime security, defence industry and technology, cyber and hybrid threats, space security and counter-terrorism.

 

The pact comes at a time when the EU, which currently spends ~1.9 per cent of GDP on defence, plans to raise this to ~3.5 per cent with a strong focus on core defence equipment, while reducing reliance on the US and Chinese suppliers. This creates a large multi-year opportunity for Indian defence companies as Europe looks for cost-competitive, reliable manufacturing and co-development partners, ICICI Securities said in a note.

 

Meanwhile, CG Power and Industrial Solutions reported December 20025 quarter (Q3FY26) performance, with standalone revenue rising 22 per cent year-on-year (YoY) to ₹2,909 crore, EBITDA up 33 per cent YoY to ₹480 crore, and PBT (before exceptional items) growing 35 per cent YoY to ₹454 crore, supported by margin expansion of 148 bps. Order intake remained robust at ₹4,096 crore, taking the unexecuted order backlog to a record ₹14,859 crore, up 66 per cent YoY, driven by strong momentum in the Power Systems segment.

 

In another development, ABB said it secured a major order from Titagarh Rail Systems to supply advanced propulsion systems and Train Control and Management System (TCMS) software for the Mumbai Metro. The scope of supply covers 18 six-car train sets for Line 6 and 22 six-car train sets for Line 5, providing a complete, integrated traction and control solution.