More Stories

Informist, Friday, Apr. 11, 2025

MUMBAI – Shares of capital goods companies are expected to rise as their valuations are favourable and on hopes that they will post good earnings growth for the March quarter. Companies engaged in the power transmission and distribution business have seen robust order inflows, an analyst at a domestic brokerage firm said.

Rise in capital expenditure on power transmission bodes well for demand for equipment such as transformers, switchgears, and will benefit companies such as ABB India, GE T&D, and transmission companies like Power Grid Corp. of India, Adani Energy Solutions, and KEC International, ICICI Securities said in a report Friday. The segment is expected to see bidding for orders worth INR 1.20 trillion in the ongoing financial year, the brokerage said, adding that two high-voltage direct current transmission projects are expected in the near term.

The transmission and distribution segment likely has projects worth INR 1.80 trillion in the pipeline as of March, the brokerage further said. This pipeline includes cost-plus-opportunities of INR 830 billion and the rest are bidding-based projects, ICICI Securities said. India has laid out transmission projects worth INR 3.40 trillion till 2029-30 (Apr-Mar). Project awarding trebled in FY25 to INR 1.31 trillion after a subdued phase during FY20-FY23. Besides order inflows, companies in the sector would have likely witnessed good order execution in the March quarter, the analyst at the domestic brokerage firm said.

Apart from a strong outlook, the capital goods sector is also more or less insulated to the tariff-drama even if US President Donald Trump decides to put reciprocal tariffs again after the 90-day pause. This is mainly because most of the companies in the sector derive 80% of their revenue from the domestic market, Geojit Investments had said in a report last week.

The BSE Capital Goods index on Friday ended at 58545.93 points, up 2.2%. All the stocks in the sectoral index ended in the green Friday. However, the sectoral index has fallen nearly 2% this week. More than half of the index constituents fell this week with Thermax, Welspun Corp., and Elgi Equipments down 6-13%. NBCC (India) and Kaynes Technology, on the other hand, rose 7.8% and 9.7% this week, respectively.

TOP HEADLINES

* Rail Vikas emerges as lowest bidder for INR-1.43-bln railway project

* HAL says media reports targeting co are biased and inaccurate

* RITES, DP World sign MoU for logistics, infrastructure development

* BHEL partners with Nuovo Pignone Intl for compressor revamp opportunities

* Govt sells 14.56 mln shares of Mazagon Dock via OFS

* BHEL official says transport ops accounted 5% of total revenue last few qtrs

* Cochin Shipyard inks MoU with Drydocks World to develop ship repair clusters

* Transformers and Rectifiers Jan-Mar consol net doubles to INR 941.7 million

* Mazagon Dock posts almost 14% rise in FY25 turnover to 107.75 bln

* IPO Alert: GK Energy gets SEBI OK for INR-5-bln fresh issue, 8.4-mln-shr OFS

* Mazagon Dock board OKs appointment of Ruchir Agrawal as CFO

* Garden Reach signs MoU with SWAN Defence for vessel collaboration

Following are the resistance and support levels for the stocks for next week as per calculations by Informist based on their prices on the National Stock Exchange:

End

Reported by Aman Aryan

Edited by Nishant Maher

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

Informist Media Tel +91 (22) 6985-4000

Send comments to feedback@informistmedia.com

© Informist Media Pvt. Ltd. 2024. All rights reserved.