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Informist, Friday, Oct. 3, 2025

MUMBAI – Shares of capital goods companies are likely to move in a range next week due to high stock valuations, which may limit any upside. However, a sharp rise in capital expenditure by the government in August has raised hope of strong earnings growth in the September quarter.

The government spent INR 846.53 billion in August on capital expenditure, more than double the amount spent during the same month last year. This compared to a near 10% year-on-year fall in capex in July.

Capital expenditure by the government so far this financial year has been strong, given the low base of last year. In the first five months of 2025-26 (Apr-Mar), the government's spending on capex is up over 43% year-on-year at INR 4.32 trillion.

Despite this, there are concerns that the government may need to curtail its capital expenditure for the full year 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.

The BSE Capital Goods index ended 1.6% higher this week. However, the sectoral index has been among the poor performers owing to high valuations of stocks in the sector in the medium term. The sectoral index has gained only 2% so far this year and has lost nearly 2% in the past 52 weeks.

TOP HEADLINES

* L&T buildings, factories vertical gets 'major' orders in India
* RITES bags order worth INR 362.27 mln from Damodar Valley Corp
* IPO Alert: Jinkushal Ind to list Fri, issue price set at INR 121 per share
* IPO Alert: Fabtech Tech offer subscribed twice as on final day
* Kirloskar Brothers gets 'significant' order from IOC to supply pump sets
* RITES inks MoU with UAE-based co to further collaboration in mobility sector
* IPO Alert: Fabtech Tech offer fully subscribed on second day
* Reliance Infra says ED survey pertaining to 15-yr old case not forex-related
* IPO Alert: Lalbaba Engineering files DRHP for fresh issue, OFS of INR 10 bln
* SKF India appoints Shailesh Kumar Sharma as MD, Aashi Arora as interim CFO
* PTC Ind arm announces capital investments to enhance mfg capabilities
* IPO Alert: Tempsens Instruments files DRHP for INR 1.18 bln fresh issue
* BHEL bags 2 EPC orders of INR 130 bln-INR 180 bln from MP power entity
* IPO Alert: Jinkushal Ind offer subscribed over 65 times as of final day
* IPO Alert: Fabtech Technologies issue opens; subscribed 70% on day 1
* BEML board sets Nov 3 as record date for 2-for-1 stock split
* L&T secures $700 mln sustainability-linked trade facility with StanC
* NCLT approves demerger of SKF India's industrial business into arm
* BEML signs tripartite MoU with Bharat Forge, Data Patterns
* L&T expects Telangana govt to take over Hyderabad metro rail by end of FY26
* IPO Alert: Aarvee Engineering files DRHP for INR 2.03-bln fresh issue, OFS
* IRCON Intl gets INR 2.24-bln order from North East Frontier Railways

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:

End

Reported by Anshul Choudhary

Edited by Avishek Dutta

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