Capital Goods Stocks Outlook
Seen down next week amid risk to order inflows
This story was originally published at 19:45 IST on 7 November 2025
Register to read our real-time news.Informist, Friday, Nov. 7, 2025
MUMBAI – Shares of capital goods companies are likely to trade lower next week as order inflows show signs of slowing, with demand from the government easing and demand from private companies yet to pick up. Further, high valuation of stocks may also push investors to book profits and move to consumption-driven companies.
ABB India Ltd. Thursday reported a nearly 3% on-year decline in orders won during the September quarter. "ABB witnessed yet another quarter of muted order inflows, indicating plateauing of ordering momentum," brokerage Nomura said in a report.
The company's management said the market has been undergoing sluggishness in both capital expenditure and project expansion, viewing it as a correction following the strong growth witnessed in the post-COVID years. Shares fell after the quarterly results, closing 4% lower at INR 5,016.50 Friday on the National Stock Exchange.
"Whether it takes one quarter, two quarters, our perspective is this is going to come back...the growth is going to come back...The moment the order intake and the order formation takes place, it will directly reflect in our books in the orders, revenues as well as in the capacity utilisation," the management said in a conference call with analysts after earnings.
Analysts are still unsure if demand will come back in a major way. Nomura expects a 15% decline in the government's capital expenditure spending in the second half of the current financial year to meet fiscal deficit target of 4.4% of the GDP.
With the earnings season in full swing, stock-specific movements are likely, with Hindustan Aeronautics Ltd. set to report its earnings Wednesday. The company's September quarter net profit is projected to rise 12% on year to INR 16.65 billion and revenue is expected to increase 10% on year to INR 65.83 billion, according to average of estimates from eight brokerages.
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* Analyst Concall: Cummins India to maintain double-digit volume growth FY26
* BHEL receives INR-66.50-bln order from NTPC for Odisha thermal power project
* Analyst Concall: ABB India sees market growth returning post sluggishness
* Earnings Outlook:Monsoon, deferred buys before GST cut to weigh on Voltas Q2
* RITES to provide services to Indian Navy for infra works in Mumbai
* Earnings Review: Cummins India Q2 PAT, sales highest in 44 qtrs; beat views
* Action Construction Jul-Sept consol PAT falls 5% YoY as sales slide 1.6%
* Earnings Review: ABB India PAT falls for 2nd quarter, beats Street view
* Earnings Outlook: Samvardhana Motherson Q2 PAT seen dn for 3rd straight qtr
* Inox India Jul-Sept consol PAT rises 23% on year to INR 608.38 million
* Praj Ind Jul-Sept consol PAT slumps 64.2% YoY to INR 192.84 million
* BEML Jul-Sept sales fall 2.4% YoY but PAT rises 6.6%
* Earnings Outlook: Siemens Jul-Sep PAT seen slightly down, EBITDA margin up
* Analyst Concall: Suzlon Energy says to focus more on EPC model going forward
* Maharashtra Seamless Q2 consol PAT falls 43% on yr as sales decline 10%
* L&T, Bharat Electronics induct Dynamatic Tech for 5th generation fighter jet
* Earnings Review:Suzlon Energy beats Q2 view on tax writeback, better margins
* Some assets of Reliance Power's promoter Reliance Infra attached under PMLA
* RITES gets order to build outpatient dept for Bengaluru mental health centre
* Timken India to acquire group co Timken GGB for INR 1.29 bln
* KEC Intl issues $26.67-mln corporate guarantee for Saudi Arabia subsidiary
* ED attaches 42 properties worth INR 31 bln linked to Anil Ambani
* Earnings Outlook:Suzlon Energy Q2 PAT seen up on improved operating leverage
* Timken India Jul-Sept PAT falls 0.5% on yr to INR 895 mln, revenue up 2.7%
* Kirloskar Brothers Jul-Sept consol PAT falls 26% on year as sales decline 1%
* L&T's heavy engg segment inks MoU with US-based Holtec Intl's Asian arm
* Titagarh Rail gets order worth INR 24.81 bln from Mumbai metro project
* Earnings Review: Kalpataru Projects Q2 PAT jumps sharply; revenue beats view
* Schaeffler India Jul-Sept PAT rises 24% YoY to INR 3.07 billion
* Earnings Review: Kalpataru Q2 PAT, revenue jump sharply; revenue beats view
* RITES in MoU with Shipping Corp to enhance maritime logistics, shipping ops
* Earnings Review: Kalpataru Q2 PAT, revenue jump sharply; revenue beats view
* Kalpataru Projects Jul-Sept net profit surges over 51% YoY to INR 2 billion
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 | 263.85 | (-)0.60 | 272.20 | 251.20 |
CG Power and Industrial Solutions | 733.25 | (-)0.50 | 746.50 | 713.50 |
Larsen & Toubro | 3882.50 | (-)3.70 | 3930.60 | 3807.00 |
Siemens | 3033.40 | (-)2.00 | 3121.30 | 2961.10 |
Thermax | 3190.90 | (-)0.90 | 3267.60 | 3122.00 |
Bharat Electronics | 414.25 | (-)2.80 | 422.60 | 401.20 |
S&P BSE Capital Goods | 69366.04 | (-)1.50 | 70117.70 | 68138.50 |
Nifty 50 | 25492.30 | (-)0.90 | 25686.80 | 25221.20 |
S&P BSE Sensex | 83216.28 | (-)0.90 | 83811.60 | 82373.30 |
End
Reported by Anshul Choudhary
Edited by Subhojit Sarkar
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