Capital Goods Stocks Outlook
Seen down as govt mulls lifting curbs on China companies
This story was originally published at 21:12 IST on 9 January 2026
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MUMBAI – Shares of capital goods companies are likely to move in a range with a negative bias amid reports that the government is considering rolling back the 2020 procurement restriction on Chinese companies to bid for government contracts. This could hit earnings of several companies in the sector, analysts said.
Bharat Heavy Electricals and Larsen & Toubro may face incremental competitive pressure if Chinese companies are allowed to bid for projects, broking firm Prabhudas Lilladher said in a note. However, it expects participation from Chinese companies to remain limited even after the curbs on bidding are lifted, due to "strategic sensitivity" and risks associated with critical infrastructure projects, it said. The brokerage also expects the government to mandate local manufacturing for Chinese companies, if they are allowed to participate in the power equipment segment.
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. There is a possibility stocks may rise on the back of optimism around the Union Budget for 2026-27 (Apr-Mar).
According to estimates from eight brokerages, the 15 capital goods companies in the Nifty 200 index are expected to report a 29% year-on-year rise in cumulative net profit during the December quarter. These companies' cumulative revenue is likely to rise 17% on year.
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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 | 274.25 | (-)8.40 | 291.00 | 263.30 |
| CG Power and Industrial Solutions | 594.75 | (-)8.40 | 633.10 | 567.30 |
| Larsen & Toubro | 4025.20 | (-)3.30 | 4129.60 | 3954.00 |
| Siemens | 3043.80 | (-)1.70 | 3168.60 | 2922.60 |
| Thermax | 3023.40 | (-)0.10 | 3083.70 | 2955.90 |
| Bharat Electronics | 418.65 | 3.80 | 428.40 | 411.00 |
| S&P BSE Capital Goods | 65582.69 | (-)3.40 | 67355.60 | 64421.50 |
| Nifty 50 | 25683.30 | (-)2.50 | 26066.60 | 25431.40 |
| S&P BSE Sensex | 83576.24 | (-)2.60 | 84798.90 | 82791.00 |
End
Reported by Anshul Choudhary
Edited by Tanima Banerjee
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