Capital Goods Stocks Outlook
Seen in range next week ahead of Q3 results
This story was originally published at 19:37 IST on 2 January 2026
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MUMBAI – Shares of capital goods companies are likely to move in a range ahead of the December quarter earnings. While major companies are expected to post strong revenue growth, stock prices may face selling pressure due to a slowdown in order wins and high valuations.
"Major capital goods companies, excluding L&T, have announced cumulative orders worth INR 324 bln in Q3FY26, down 20% YoY (excluding the HVDC order for Khavda South Olepad)," Elara Securities said. The same universe of companies had reported an over 26% year-on-year rise in order inflows in the September quarter, it said.
Some analysts are concerned about the slowdown in growth as order wins come down. Elara expects capital goods companies in its universe to report 12% revenue growth in Oct-Dec. For comparison, capital goods companies in the Nifty 200 index reported revenue growth of 15% in the September quarter.
Capital goods stocks may rise on optimism about the Union Budget for 2026-27 (Apr-Mar). Overall, analysts are divided on the sector, with some concerned about high valuations and a slowdown in government capital expenditure, which may strain companies' order books.
TOP HEADLINES
* KEC International bags new orders worth INR 10.5 bln across ops
* Kalpataru Projects gets new orders worth INR 7.19 bln for metro rail project
* Titagarh Rail Systems board OKs transfer of shipbuilding ops to arm
* Voltas says GST demand, penalty for short payment reduced to INR 215.4 mln
* IPO Alert: Vishal Nirmiti files draft papers with SEBI for fresh issue, OFS
* RITES gets $3.6-mln railway contract from Zimbabwe-based Berhard Development
* IPO Alert: Behari Lal Engineering gets SEBI nod for fresh issue, OFS
* L&T gets 'significant' order for transportation infra business in Hyderabad
* KEC Intl says examining Power Grid supplementary order maintaining 9-mo ban
Following are the resistance and support levels for key capital goods stocks for next week as per calculations based on their prices on the National Stock Exchange:
| Company | Price | Week-on-week change in % |
Resistance | Support |
| Bharat Heavy Electricals | 299.50 | 6.40 | 306.60 | 288.00 |
| CG Power and Industrial Solutions | 649.10 | (-)1.10 | 660.00 | 632.70 |
| Larsen & Toubro | 4163.40 | 2.90 | 4200.00 | 4108.80 |
| Siemens | 3097.70 | (-)0.10 | 3149.90 | 3032.30 |
| Thermax | 3025.90 | 0.50 | 3097.60 | 2971.20 |
| Bharat Electronics | 403.15 | 1.20 | 409.20 | 395.90 |
| S&P BSE Capital Goods | 67872.72 | 1.10 | 68279.30 | 67145.20 |
| Nifty 50 | 26328.55 | 1.10 | 26483.90 | 26040.70 |
| S&P BSE Sensex | 85762.01 | 0.90 | 86290.60 | 84804.60 |
End
Reported by Anshul Choudhary
Edited by Saji George Titus
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