Capital Goods Stocks Outlook
Seen outperforming broader market next week
This story was originally published at 21:06 IST on 13 June 2025
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NEW DELHI – Shares of capital goods companies are expected to outperform the broader market next week, despite volatility across the board due to rising geopolitical uncertainties, according to Sonam Srivastava, founder of Wright Research.
In the near- to medium-term, stocks in the sector are seen benefitting from structural tailwinds, including a pickup in capital expenditure, as per analysts. Srivastava sees the recently announced 50-basis-point cut in policy repo rate by the Reserve Bank of India as a strong theoretical trigger for a lift up in capital expenditure by the private sector. However, it is difficult to pin point a timeline for the same, she said. Further, expensive valuations of some stocks in the sector remains a concern for a section of investors, she added. "There's a lot of attention that is coming back to capital goods, infrastructure," Srivastava said.
"Government capital expenditure saw a significant uptick in Q4FY25, although some of it was concentrated in specific areas like telecom, which may not reflect broad-based infrastructure momentum," Franklin Templeton India said in a note earlier this week. It added that while overall capex growth for listed companies appears healthy, commentary from capital goods firms suggests muted sentiment, likely on the back of global tariff uncertainties.
On Friday, the BSE Capital Goods index closed at 69767.45 points, extending losses for the third consecutive session. Over the week, the index fell over 1.5% while the BSE Sensex was down 1.3%. So far in June, the index has fallen 1.8% while the BSE Sensex has seen a 0.4% fall.
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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:
| Company | Price | Week-on-week change in % | Resistance | Support |
| Bharat Heavy Electricals | 253.55 | (-)0.80 | 261.00 | 242.00 |
| CG Power and Industrial Solutions | 672.20 | (-)1.40 | 690.70 | 640.70 |
| Larsen & Toubro | 3587.40 | (-)1.90 | 3666.50 | 3446.30 |
| Siemens | 3260.00 | (-)1.10 | 3335.10 | 3132.30 |
| Thermax | 3550.80 | 0.50 | 3664.60 | 3405.40 |
| BHARAT ELECTRONICS LTD | 394.20 | 0.90 | 408.70 | 372.20 |
| S&P BSE Capital Goods | 69767.45 | (-)1.50 | 71036.70 | 67500.20 |
| Nifty 50 | 24718.60 | (-)1.10 | 24930.00 | 24367.30 |
| S&P BSE Sensex | 81118.60 | (-)1.30 | 81788.00 | 80019.90 |
End
Reported by Shakshi Jain
Edited by Deepshikha Bhardwaj
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