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Informist, Friday, Sept. 26, 2025

 

MUMBAI – Shares of capital goods companies are likely to move in a range, given the high valuations of stocks in the sector. While high valuations have put stocks at risk of profit booking, analysts do not expect any significant fall, given hopes of higher capital expenditure going forward.

 

Market participants are in a wait-and-watch mode, eagerly awaiting demand patterns during the festival season, which starts in October. Analysts are hopeful that demand from consumers will improve after the government cut goods and services taxes on several daily-use products.

 

A better demand will bolster expectations of recovery in capital expenditure by private companies, while softer demand trends may lead to a fall in stock prices. "Investment in private capex has largely been in pockets – data centres, electronics manufacturing and electrification," HSBC said in its strategy report Friday. 

 

Capital expenditure by the government so far this financial year is strong, given the low base of last year. The government's capital expenditure in the first four months of 2025-26 (Apr-Mar) was INR 3.47 trillion, up 33% from the same period last year, according to data from the Controller General of Accounts.

 

There are concerns that the government may need to curtail its capital expenditure to offset the revenue loss resulting from the income tax rebates announced in the Budget and the recent GST rate cuts. While the government expects its revenue loss from GST cuts to be INR 480 billion, some economists suggest it could be INR 1 trillion-INR 2 trillion.

 

A large part of the capital goods sector will not be affected by the steep tariffs imposed by the US on Indian imports, analysts said. However, companies in the business of container cargoes may be impacted depending on their mix of cargo going to the US.

 

The BSE Capital Goods index fell this week, snapping a three-week gaining streak. The sectoral index fell by over 4% this week on the BSE, marking its worst weekly decline since the week ended Apr. 4. Shares of Praj Industries, Inox Wind, and Jyoti CNC Automation were the worst-hit, losing 9-10% this week.

 

TOP HEADLINES

 

* L&T Tech, Siemens expand partnership for AI automation across sectors
* Telangana govt agrees to take over phase 1 of Hyderabad metro rail project
* IPO Alert: Epack Prefab Technologies' offer subscribed 59% as of second day
* RITES gets $18-mln order from South Africa-based Talis Logistics
* DIPAM rejects BHEL's proposal to form joint venture with REC arm
* Kalpataru Projects arm Vindhyachal Expressway settles dispute in road project
* SKF India promoter group cos to transfer 6.7% stake to Aktiebolaget SKF
* ABB India to add 23?pacity for INR 1.40 bln, launches IE5 LV motors
* Maharashtra Seamless bags order worth INR 2.56 bln to supply seamless pipes
* L&T, Bharat Electronics to develop India's 5th generation fighter aircraft
* IPO Alert: Fabtech Technologies sets price band at INR 181-INR 191 per share
* KNR Constructions gets INR 4.59-bln order for Hyderabad road projects
* IPO Alert: GK Energy offer subscribed over six times as of second day
* KEC International bags orders worth INR 32.43 bln from UAE, Americas
* Timken India to acquire 26% stake in Sunstreamgreen Energy for INR 7 mln
* L&T renewables vertical in MoU with ACWA Power for Saudi Arabia project
* IPO Alert: GK Energy offer subscribed over 2 times on first day
* Graphite India acquires 6.8% stake in US co GrafTech Intl for INR 1.68 bln

 

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	231.01	(-)2.60	235.80	227.40
CG Power and Industrial Solutions	739.40	(-)5.10	767.40	723.50
Larsen & Toubro	3729.50	1.50	3862.40	3594.60
Siemens	3096.30	(-)6.90	3190.10	3028.10
Thermax	3197.70	(-)3.30	3264.10	3129.10
Bharat Electronics	395.90	(-)3.20	410.60	387.10
S&P BSE Capital Goods	68345.94	(-)4.10	70165.60	67354.10
Nifty 50	24654.70	(-)2.70	24956.70	24478.40
S&P BSE Sensex	80426.46	(-)2.70	81298.00	79896.60

 

 

End

 

Reported by Anshul Choudhary

Edited by Saji George Titus

 

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