Capital Goods Sector

The sector's outlook remains anchored in rising public capital expenditure and sustained investments across defence, renewables, transmission and data centre infrastructure

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.

With government capex growth moderating, investors will track Q3 order inflows and management guidance for signs of a private investment pick-up in capital goods

The brokerage highlights a robust export outlook for companies in renewables and T&D, with select EPC and product companies benefiting from international demand.

Elara Capital expects its capital goods universe to clock 12 per cent sales growth in Q3, while consumer electricals and durables are seen growing 22 per cent Y-o-Y

Motilal Oswal said that stable execution and rising export momentum could shape capital goods sectors' H2FY26 outlook

Motilal Oswal analysts see sustained demand visibility for transmission EPC companies such as KPIL and KEC, aided by large-scale projects, international opportunities & improving margin prospects.

Motilal Oswal sector of the week: The capital goods sector is riding a multi-year upcycle driven by public capex and energy transition imperatives

Of the 270 companies analysed, largecaps saw a 6 per cent Y-o-Y earnings rise, midcaps gained 2 per cent, while smallcaps slumped 16 per cent.

It would be supported by a rebound in defence and transmission orders

Before companies embark on another leg of the high-growth phase, analysts expect near-term moderation in growth

The BSE Capital Goods index slipped 4.6% in intra-day trades today, falling 7.5% in 2 days after the finance minister presented the Union Budget 2025-26 in the Parliament on Saturday

RVNL, Bharat Dynamics, Hitachi Energy India, Siemens, ABB India, Titagarh Rail Systems, CG Power and Industrial Solutions, Bharat Electronics and L&T down in the range of 5 per cent to 10 per cent.

The survey also states that the government has acknowledged these challenges and taken steps to address them

Siemens stock outlook: This stock from the engineering and capital goods industry could slide by another 18% if the key supports at Rs 5,600 and Rs 5,400 are violated shows technical chart.

Benign raw material costs, execution of healthy order book to aid growth, say analysts

The capital goods sector's long-term outlook remains strong across segments as companies focus on energy transition globally, on top of manufacturing localisation and infra development pace in India.

The new policy will replace the existing National Capital Goods Policy 2016

Bharat Electronics, Larsen & Toubro, Hindustan Aeronautics, CG Power, Bharat Heavy Electricals and Schaeffler India have rallied between 7% and 9% in intra-day trade

In the past six months, the BSE Capital Goods index has outperformed the market by surging 31%, as against a 11% rally in the S&P BSE Sensex.