Capital Goods Stocks Outlook
Transmission cos seen rising on order inflows
This story was originally published at 16:25 IST on 19 September 2025
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MUMBAI – Transmission companies are expected to rise further amid renewed order announcements by the Central Electricity Authority. Brokerages are positive on companies focusing on high voltage direct current transmission lines, which currently have strong demand globally.
Brokerage Motilal Oswal Financial Services Monday said National Committee on Transmission has recommended projects worth INR 700 billion to the Ministry of Power in the last six months. "Our interactions with KEC International and Kalpataru Projects International also suggest that the transmission ordering pipeline remains strong for next few years," the brokerage said. It was also positive on these companies' plans of targeting high voltage direct current projects.
On similar lines, brokerage Nomura raised GE Vernova T&D India's target price by 13% to INR 3,350 per share. It found the company has a strong visibility of orders driven by demand for high voltage direct current projects. As per the brokerage's interaction with the management of GE Vernova, the company is likely to get additional orders of INR 20 billion-INR 30 billion from its parent company driven by demand for high voltage direct current projects in European Union and West Asia.
Nomura raised its order inflow estimate over FY25-FY28 by 28% to INR 444 billion. It also raised earnings before interest, tax, depreciation, and amortisation estimate by 90-180 basis points over the same period, leading to a rise in earnings per share by 7-8%. The brokerage maintained a 'buy' rating on the stock.
Among other segments, analysts remain positive on solar modules amid rising demand and lower goods and services taxes on components, which is likely to bring down the cost for companies. ICICI Securities Wednesday said the government has proposed draft norms to increase domestic content for solar manufacturing, which the brokerage expect to benefit large players in the segment such as Premier Energies.
"It (draft proposal) has suggested to bring wafer production within Indian shores. New projects connected to grid will have to compulsorily procure domestically manufactured wafer and ingots from Jun '28," ICICI Securities said.
BSE Capital Goods index rose for the third straight week, rising nearly 9% during this period. This week, Cochin Shipyard, Kirloskar Oil Engines, and Zen Technologies were the top gainers in the sectoral index and these rose 8-9%.
TOP HEADLINES
* Graphite India acquires 6.8% stake in US co GrafTech Intl for INR 1.68 bln
* L&T's construction, industrial pdts vertical gets 'significant' orders
* BHEL gets show cause notice of INR 5.86 bln from Telangana GST authorities
* RITES gets INR 786.5-mln rate contract from NTPC to hire diesel locomotives
* IPO Alert: Epack Prefab Tech sets price band at INR 194-INR 204 per share
* IPO Alert: GK Energy raises INR 1.39 bln from anchor investors
* Flux in energy transition norms puts stress on cos - former Cummins official
* Texmaco Rail gets order of INR 868.5 mln from UltraTech Cement
* PTC Industries arm commissions vacuum arc remelting furnace in Lucknow
* Titagarh Rail delivers first diving support craft A20 to Indian Navy
* L&T's power T&D ops get 'large' orders in India, UAE, Oman
* CCI 'conducts enquiry' at Maharashtra Seamless' New Delhi, Gurugram offices
* L&T wins 'significant' order for Kudankulam project from Nuclear Power Corp
* Suzlon Energy gets 838 MW wind energy project from Tata Power arm
* L&T bags 'large' order of INR 25-50 bln from National High Speed Rail Corp
* L&T arm writes to govt to take over Hyderabad metro
* Titagarh Rail launches third diving support craft vessel for Indian Navy
* Engineers India gets INR 6.18-bln contract from fertiliser co in Africa
* BHEL gets INR 229-mln order from Indian Railways to supply Kavach equipment
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 | 237.17 | 3.70 | 245.10 | 229.80 |
| CG Power and Industrial Solutions | 779.40 | (-)0.80 | 793.90 | 766.80 |
| Larsen & Toubro | 3675.40 | 2.70 | 3717.80 | 3649.80 |
| Siemens | 3325.90 | 3.90 | 3365.40 | 3288.80 |
| Thermax | 3307.60 | (-)0.10 | 3396.30 | 3245.10 |
| Bharat Electronics | 408.90 | 2.40 | 415.40 | 405.00 |
| S&P BSE Capital Goods | 71231.16 | 2.20 | 71758.00 | 70855.60 |
| Nifty 50 | 25327.05 | 0.90 | 25489.80 | 25204.90 |
| S&P BSE Sensex | 82626.23 | 0.90 | 83189.60 | 82204.20 |
End
Reported by Anshul Choudhary
Edited by Akul Nishant Akhoury
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