Capital Goods Stocks Outlook
Seen dn on threat to pvt capex from US tariffs
This story was originally published at 21:43 IST on 1 August 2025
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MUMBAI – Shares of capital goods companies are expected to see profit-taking in the near term amid high valuations and risks stemming from US tariffs. While capital goods companies are largely dependent on domestic demand, US tariffs pose a risk to capital expenditure plans by private companies, analysts said.
Wednesday, US President Donald Trump imposed 25% tariff on imports from India. This is likely to hit the earnings of some export-oriented companies. A report by Emkay Global Financial Services said exports of machinery and parts accounts for 8% of total Indian exports to the US, and these will be at risk.
The tariff is also a negative for defence companies, which were expected to see exports growing. Apart from the blow from the tariff, several companies are yet to report their June quarter earnings. Triveni Turbine is set to report its earnings Monday, Container Corp. of India Tuesday, Kirloskar Oil Engines Wednesday, and Cummins India Thursday.
Of these, Cummins India's net profit for the June quarter is expected to rise 11.5% on year to INR 4.68 billion. Its revenue is likely to rise 12% on year to INR 25.79 billion. "We expect both powergen (power generation) and industrial segments to grow by 10% YoY (year-on-year) led by mission critical and infra projects respectively... exports are expected to increase 29% YoY," Nomura said in its earnings preview of Cummins India.
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* Timken India Apr-Jun net profit rises 8% on year to INR 1.04 billion
* Thermax Apr-Jun consol sales fall 1.6% YoY but PAT rises 31.6%
* CRISIL ups Suzlon Energy long-term rtg on bank loan facilities to A+ from A
* RITES signs MoU with NABARD arm for infra, rural development projects
* Earnings Outlook: Suzlon Energy PAT seen rising sharply on year in Apr-Jun
* Maharashtra Seamless Apr-Jun consol sales fall 0.5% YoY but PAT rises 78.2%
* ABB India partners with THINK Gas to digitalise gas distribution network
* KEC Intl gets orders worth INR 15.09 bln across various businesses
* Analyst Concall: L&T eyes INR-14.8-tln order prospect for rest of FY26
* L&T in talks with companies to export green ammonia from Kandla plant
* Earnings Review:L&T consol PAT below Street view; sales up in 3 key segments
* V-Guard Ind board OKs entry into lighting business, merger of arm with co
* L&T wins 'ultra-mega' order for hydrocarbon offshore ops from W Asia client
* AIA Engineering to shut Nagpur unit from Tuesday to streamline operations
* Earnings Review: Sharp fall in inventory cost boosts KEC Intl's Apr-Jun PAT
* KEC Intl OKs reappointing Vimal Kejriwal as MD, CEO for 1 yr effective Apr 1
* Earnings Outlook: Overseas, govt orders likely to drive L&T PAT in Apr-Jun
* Earnings Outlook: Large order inflows to boost KEC International's Q1 PAT
* BEML signs MoU with Hindustan Shipyard for advanced marine systems
* RITES gets letter of intent for INR-1.8-bln order from Bharat Electronics
* Govt eyes host of benefits from UK FTA; agri exports to rise 50% in 3 years
* Schaeffler India Apr-Jun net profit rises nearly 17% YoY to INR 2.96 billion
Following are the resistance and support levels for capital goods 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 | 231.60 | (-)3.60 | 241.10 | 226.40 |
| CG Power and Industrial Solutions | 651.30 | (-)1.70 | 671.90 | 639.20 |
| Larsen & Toubro | 3,587.30 | 4.20 | 3,658.40 | 3,542.60 |
| Siemens | 3,023.60 | (-)0.50 | 3,075.90 | 2,971.90 |
| Thermax | 3,778.70 | 1.10 | 4,019.60 | 3,639.60 |
| Bharat Electronics | 377.20 | (-)4.60 | 386.30 | 371.70 |
| S&P BSE Capital Goods | 67850.22 | (-)1.90 | 68905.40 | 67196.70 |
| Nifty 50 | 24565.35 | (-)1.10 | 24877.30 | 24379.10 |
| S&P BSE Sensex | 80599.91 | (-)1.10 | 81626.30 | 79982.40 |
End
Reported by Anshul Choudhary
Edited by Rajeev Pai
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