More Stories

Informist, Friday, Dec. 12, 2025

MUMBAI – Shares of capital goods companies are likely to fall next week as valuations remain high despite the slight decline in the past few weeks. Analysts continue to expect capital expenditure to remain weak in the remaining months of this financial year.

The government's capital expenditure in October fell more than 28% on year to nearly INR 37 billion. It has already frontloaded the capital expenditure in the first half of the financial year 2025-26 (Apr-Mar), up nearly 40% on year. The government is now expected to control its expenses to fund its major announcements such as the reduction in goods and services tax and higher tax rebates for the salaried people. Moreover, there hasn't been any significant improvement in capital expenditure from private sector companies, analysts said.

Analysts' views on defence companies are divided over their stock valuations. Some consider valuations to be high and advise against investing in the sector, while there are others who said strong order-books justify the high valuations of several stocks.

Owing to strong order books, Goldman Sachs has upgraded its rating on the sector to "overweight" earlier this week. "While valuations for the sector are high, we think defense stocks with competitive moats and steep earnings growth trajectories, especially the private sector companies are likely to enjoy richer valuations, and the risk-reward for the sector has improved after the pullback in the stocks over the past year," the brokerage said.

The BSE Capital Goods index fell over 1% this week, with Bharat Dynamics, Mazagon Dock Shipbuilders, and Siemens down 5-7%. The sectoral index has declined for the fourth straight session, falling nearly 6% in this period.

TOP HEADLINES

* Action Construction Equipment, Sanghvi Movers sign MoU for heavy slew cranes
* HG Infra, Kalpataru Projects' JV gets letter of acceptance for metro viaduct
* Ashoka Buildcon-Adani JV gets INR-18.16-bln Mithi River development project
* Bombay HC directs RCF to refund INR 2.18 bln to Thermax with interest
* Promoter to buy 1% in Siemens from Siemens Energy Holding for INR 11.4 bln
* Kalpataru Projects gets INR 20 bln orders for power T&D,  civil infra sector
* ED places INR 779-million lien in Reliance Infra's accounts for FEMA offence
* Graphite India to distribute Kivoro's graphene-based additive in India
* L&T board approves transfer of realty business to arm L&T Realty Properties
* Siemens to sell low-voltage motors ops for INR 22 bln to Innomotics India
* INTERVIEW: Out of debt recast, Ramky Infra CEO sees FY27 revenue up 25-30%
* Ashoka Buildcon gets INR-4.47-bln order from Brihanmumbai Municipal Corp
* RInfra, RPower clarify on asset attachment report, say operating normally
* BEML signs MoU with South Korean cos for autonomous maritime, port cranes

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 Ashish Shirke

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd. by NSE Data & Analytics Ltd., a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt. Ltd.

Informist Media Tel +91 (22) 6985-4000

Send comments to feedback@informistmedia.com

© Informist Media Pvt. Ltd. 2025. All rights reserved.