Capital Goods Sector

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.

The country's exports of goods and services rose marginally by 0.4 per cent to USD 765.6 billion in 2023 despite global economic uncertainties, according to the commerce ministry data. Sectors which helped keep India's exports afloat include electronics, pharmaceuticals, cotton yarn, fabrics and made-ups; ceramic products, meat, dairy and poultry products, fruits and vegetables and information technology. Goods exports in the last calendar year, however, contracted by 4.71 per cent to USD 431.9 billion while services exports are estimated to have risen by 7.88 per cent to USD 333.8 billion, the data showed. The merchandise imports also dipped by 7 per cent to USD 667.73 billion last year as against USD 720.2 billion in 2022. The latest data for the services sector released by the RBI is for November 2023. The data for December 2023 is an estimation by the ministry. The main export destinations for India are the US, the UAE, the Netherlands, Bangladesh, the UK and Germany. Goods .

So far in the calendar year 2023 (CY23), the stock of this engineering company has surged 30.6 per cent, as against 7 per cent rise in the S&P BSE Sensex

So far in this calendar year (CY23), shares of L&T surged 24 per cent, as against 9.1 per cent gain in the S&P BSE Sensex

Cheaper raw material, lower freight costs, better supply chain management to help sector: Analysts

ITC and Tata Motors have zoomed 33 per cent each since December 1, and have led the rally in the 30-pack index