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Informist, Friday, Feb. 6, 2026

MUMBAI – Shares of capital goods companies are seen moving in a range next week as several stocks in the sector have already run up following the presentation of the Union Budget for the financial year 2026-27 (Apr-Mar). These stocks may rise some more as analysts were largely positive about the capital expenditure announcements in the Budget, but high stock valuations are expected to limit the upside.

The BSE Capital Goods sectoral index has risen nearly 10% in two weeks on positive sentiment around the Budget, which was announced Sunday. However, these gains came after a sharp decline and the sectoral index has not offered any returns in the past six months.

The Budget has projected the central government's capital expenditure for FY27 at INR 12.21 trillion, up 11.5% from the revised estimate of INR 10.96 trillion for FY26. "Positive for highway-focused and diversified EPC (engineering, procurement, and construction) companies. Higher allocation could lead to improved awarding across verticals like highways, railways, metro, buildings & factories, water supply," JM Financial Institutional Securities said in a report Monday.

Brokerages were also positive that the government has maintained its capital expenditure at 3.1% of GDP. There were some concerns that the government may bring the level down to 3% of GDP or even lower. However, the government chose instead to slow the pace of fiscal consolidation with the fiscal deficit in FY27 seen at 4.3% of GDP as compared with the estimated 4.4% in FY26.

TOP HEADLINES

* SKF India Oct-Dec PAT falls over 43% YoY to INR 620 million
* Analyst Concall: Cummins India sees double-digit growth in domestic ops FY27
* Analyst Concall: Suzlon Energy confident of achieving FY26 guidance
* Cemindia Projects Oct-Dec consol PAT rises 27.4% YoY to INR 1.11 billion
* Kirloskar Brothers Oct-Dec consol sales fall 2.4% YoY but PAT rises 6.1%
* KNR Constructions Oct-Dec PAT tumbles over 90% YoY as sales fall over 21%
* Earnings Review: Surge in expenses limits Suzlon Energy's Q3 PAT growth
* Varroc Engg consol net loss narrows on year to INR 102.97 million in Oct-Dec
* Earnings Review: Cummins India Q3 PAT misses estimates on labour code cost
* Timken India Oct-Dec net profit falls 33% YoY to INR 498.5 million
* Earnings Review: Kalpataru Projects Q3 numbers up; PAT misses view slightly
* RITES Oct-Dec PAT rises marginally on year to INR 955.1 million
* Earnings Outlook: Suzlon Energy Q3 net seen sharply up on EPC sales rise
* Varroc Engineering gets order to supply chargers for EV from global EV OEM
* Action Construction Oct-Dec consol sales fall 2.3% YoY but PAT rises 4.2%
* KEC Intl gets new orders worth INR 10.20 bln across various verticals
* RITES signs MoU with SAIL for maintenance, leasing of locomotives
* Earnings Review: Reversal in provision lifts Thermax Q3 net profit 76% YoY
* First View: Texmaco Rail MD Sudipta Mukherjee on Union Budget 2026-27
* Reliance Infra posts INR 111.2 million consol PAT in Oct-Dec vs loss yr ago
* Ashoka Buildcon Oct-Dec sales fall over 18% YoY, PAT rises 68%
* To start tender offer for Yutaka Giken, arm in Feb - Samvardhana Motherson
* KEC International to execute intra-subsidiary equity sale for $118 mln
* Earnings Review:KEC Intl Q3 sales rise YoY, but PAT dn on labour code impact
* Earnings Review: KEC Intl Q3 sales rise but PAT dn on labour code impact

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:

End

Reported by Anshul Choudhary

Edited by Rajeev Pai

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