Capital Goods Stocks Outlook
L&T earnings likely to drive sector next week
This story was originally published at 21:39 IST on 23 January 2026
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MUMBAI – Shares of capital goods companies are seen lower amid weak market sentiment next week. The sector companies may take cues from the December quarter earnings of Larsen & Toubro Ltd., scheduled for Wednesday.
The consolidated net profit of the country's largest engineering, procurement, and construction company is estimated at INR 43.17 billion for the December quarter, up over 28% on year, according to the average of estimates from 10 brokerages. Its consolidated revenue from operations is estimated at INR 746.96 billion, up over 15% on year. The company's earnings are likely to benefit from strong execution in the quarter even as its order inflow may fall on year during the quarter.
Analysts are not expecting any sharp increase in capital expenditure when the government releases the Union Budget for the next financial year on Feb. 1. Goldman Sachs expects the government to reduce allocation to capex to 2.9% of GDP from 3% of GDP budgeted for this financial year. Nuvama Wealth Management expects the allocation to capex rising 13% on year, but the brokerage also said this may not be enough to trigger significant capex from private players.
Shares of capital goods declined for the third straight week amid overall weakness in market due to slower earnings growth and expensive valuation. The BSE Capital Goods index fell more than 3% this week and 9% in three weeks. Among other companies, Bharat Electronics will announce its earnings on Wednesday.
TOP HEADLINES
* ABB India launches low-voltage switchgear, ArTu Formula
* Ashoka Buildcon INR-3-bln bid accepted for signature bridge project in Daman
* ICICI Prudential MF buys 2.03% stake in V-Guard, ups share to 7.04%
* ABB India completes modernisation of BPCL's Vadinar-Bina pipeline infra
* BHEL's Oct-Dec EBITDA rises 84% YoY to INR 7.72 bln, beats Street estimates
* ABB India dispatches its first locally manufactured converter in India
* BHEL board OKs "short closure" of investment in new Varanasi plant
* Kalpataru Projects completes stake sale in arm Vindhyachal Expressway
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 | 242.50 | (-)8.60 | 260.50 | 232.70 |
| CG Power and Industrial Solutions | 549.10 | (-)2.20 | 586.40 | 528.70 |
| Larsen & Toubro | 3743.80 | (-)2.90 | 3833.70 | 3675.10 |
| Siemens | 2900.40 | (-)0.60 | 2963.60 | 2858.40 |
| Thermax | 2920.60 | (-)1.70 | 2986.70 | 2866.90 |
| Bharat Electronics | 410.70 | 0.10 | 423.20 | 402.20 |
| Index | Levels | |||
| S&P BSE Capital Goods | 61781.41 | (-)3.40 | 63904.30 | 60648.90 |
| Nifty 50 | 25048.65 | (-)2.50 | 25463.30 | 24818.00 |
| S&P BSE Sensex | 81537.70 | (-)2.40 | 82886.40 | 80797.50 |
End
Reported by Anshul Choudhary
Edited by Akul Nishant Akhoury
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