Capital Goods Stocks Outlook
Seen in range ahead of major Apr-Jun earnings
This story was originally published at 20:09 IST on 11 July 2025
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MUMBAI – Shares of capital goods companies are likely to move in a range ahead of the quarterly corporate results. While information technology companies have already started reporting their results, most of the capital goods companies are likely to do so after a week.
Analysts are hopeful capital goods companies will report higher margins in the June quarter. A poll by Informist showed the cumulative net profit of 14 capital goods companies in the Nifty 200 index is expected to rise over 23% on year for the June quarter, while revenue for the quarter is seen 13% higher.
Among major earnings next week, Polycab India is set to report its June quarter results Thursday. Its consolidated net profit is expected to rise 29% on year, according to the average of estimates by seven brokerages. Its consolidated revenue may rise over 20% on year.
Polycab India's sales are expected to be largely driven by strong demand in the Indian market. "Exports growth is weaker than initially anticipated due to US tariffs and West Asia-related uncertainties," Kotak Institutional Equities said in its earnings preview report.
While sentiment around capital goods companies is positive on expectations of strong earnings, the high valuation of several stocks may limit gains hereon. Further, it puts these stocks under the risk of profit sales if the market falls.
The BSE Capital Goods index snapped a three-week winning run and closed nearly 2% lower this week. Shares of Bharat Forge, Bharat Dynamics, Siemens, Mazagon Dock Shipbuilders, KEI Industries, and Bharat Electronics fell 4-8%.
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* Elecon Engg Apr-Jun consol PAT up over twofold on year at INR 1.75 billion
* BEML says expanding Kolar Gold Field facility not setting up new units
* Titagarh Rail board OKs raising INR 2 bln via convertible warrants
* Titagarh Rail to raise INR 2 bln via convertible warrants to two promoters
* No evidence of arbitrariness in electronic waste policy, govt tells HC
* Transformers and Rectifiers appoints Mukul Srivastava as CEO
* Voltas enters ceiling fans segment, launches Flo Series range
* IPO Alert: Allied Engineering filed DRHP with SEBI for fresh issue, OFS
* Rail Vikas gets INR-1.43-bln letter of award from Southern Railway
* BEML gets two export orders aggregating $6.23 mln
* Jyoti CNC to acquire 20 acres in Karnataka for future expansion
* Titagarh Rail board to meet Wednesday to mull raising funds via equity
* Eveready eyes 53% market share in alkaline batteries in next 3-4 years
Following are the resistance and support levels for the stocks for next week as per calculations based on their prices on the National Stock Exchange:
| Company | Price | Week-on-week change in % | Resistance | Support |
| Bharat Heavy Electricals | 258.70 | (-)0.60 | 263.60 | 254.50 |
| CG Power and Industrial Solutions | 667.75 | (-)1.30 | 682.70 | 659.00 |
| Larsen & Toubro | 3540.60 | (-)1.50 | 3605.30 | 3503.10 |
| Siemens | 3117.70 | (-)5.30 | 3222.90 | 3052.50 |
| Thermax | 3465.00 | 0.20 | 3531.30 | 3374.30 |
| Bharat Electronics | 409.30 | (-)4.30 | 417.30 | 401.10 |
| S&P BSE Capital Goods | 70967.04 | (-)1.90 | 72147.20 | 70221.40 |
| Nifty 50 | 25149.85 | (-)1.20 | 25393.90 | 25007.00 |
| S&P BSE Sensex | 82500.47 | (-)1.10 | 83259.60 | 82062.70 |
End
Reported by Anshul Choudhary
Edited by Nishant Maher
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