Capital Goods Stocks Outlook
Seen in range amid truncated trading week
This story was originally published at 22:21 IST on 17 October 2025
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MUMBAI – Capital Goods stocks are likely to move in a thin range next week amid a truncated week. Equity markets will be open for only one hour of trading on Tuesday for Diwali Muhurat session and it will be shut on Wednesday. There are no major earnings for the sector next week.
Analysts are cautious on the sector due to high valuation of stocks and possibility of hit to earnings growth if capital expenditure from private companies don't pick up. There are also concern that the government may limit its spending to offset the impact of loss of revenue from a cut in goods and services tax and raising the tax rebate limit for salaried employees in the Union Budget.
"We expect moderation of earnings growth given a slowdown in short cycle business and a lack of pick up in broader private capex," Nomura said in its strategy report on Thursday. "We see downside risks for gross margins of product-based companies mostly due to a moderation in pricing power on the back of increased competition and additional capacity in the market."
The BSE Capital Goods has largely moved in a range this month as investors are likely waiting for quarterly earnings of big players in the sector such as Larsen & Toubro, which is scheduled to announce its earnings on Oct. 29. The sectoral index has gained only 1% so far this month as compared with 4.6% rise in Sensex.
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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 | 232.62 | (-)2.90 | 240.00 | 227.70 |
| CG Power and Industrial Solutions | 757.70 | 0.60 | 769.90 | 744.10 |
| Larsen & Toubro | 3839.40 | 1.50 | 3885.70 | 3806.90 |
| Siemens | 3121.20 | (-)0.80 | 3162.60 | 3080.80 |
| Thermax | 3145.20 | (-)2.40 | 3306.40 | 3032.60 |
| Bharat Electronics | 412.80 | (-)0.20 | 424.50 | 403.80 |
| S&P BSE Capital Goods | 69061.86 | (-)0.70 | 70172.50 | 68217.80 |
| Nifty 50 | 25709.85 | 1.70 | 25939.60 | 25393.80 |
| S&P BSE Sensex | 83952.19 | 1.80 | 84743.00 | 82810.70 |
End
Reported by Anshul Choudhary
Edited by Akul Nishant Akhoury
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