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Informist, Friday, Mar. 20, 2026

 

MUMBAI – Shares of capital goods companies are seen lower next week as higher crude oil prices and shortage of gas due to the US-Iran war is likely to hit earnings of companies in this sector. The war in West Asia has entered its third week and has already led to a spike in prices of key commodities.

 

"Capital goods manufacturers face a dual squeeze. On inputs, gas-based heat treatment for precision components remains largely unavoidable for MSME suppliers, while aluminium castings and structural steel are seeing cost and availability pressures amid LPG shortages at re-rollers," Emkay Global Financial Services said in a strategy report on Tuesday. Steel prices have increased since the war started, analysts said.

 

Apart from risk of higher input costs, the war can hit demand from private players, which was already weak, in a major way. "On outputs, capex across gas-dependent industries (ceramics, fertilizers, food processing, glass) is being deferred, slowing equipment orders even as production constraints tighten," Emkay Global said.

 

The overall negative sentiment in the market is also likely to affect share prices of capital goods companies. There are worries that economic growth will slow down as higher crude oil prices lead to inflation which in turn can hit demand. "The supply, inflation, and resultant demand shocks to global economy could be much higher than is being currently predicted," ASK Private Wealth said in a note Friday.

 

The BSE Capital Goods index was down 0.4% this week. It has fallen more than 4% since the US and Israel first attacked Iran. This week, shares of Timken India fell 8.2% and AIA Engineering were down 7%, while those of Waaree Energies rose over 16% on week and Premier Energies were up 10.6%.

 

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* Electrosteel Castings promoter group entity buys 3.3% stake in company
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* BHEL board approves INR-30.64-bln investment in co's JV with Coal India
* Patel Engg gets INR 9.10-bln order for Package-I of Renuka Ji Dam project
* Texmaco Rail gets INR-514.5-mln order from North Eastern Railway
* BEML gets letter of intent to make, supply metro rolling stock in Africa
* Samvardhana Motherson completes tender offer to acquire Yutaka Giken, arm
* SC stays INR-786-mln VAT demand against IRCON; sends notice to Bihar tax dept
* Isgec Heavy extends C$2 million standby letter of credit for Canadian arm
* Kalpataru Projects gets new orders worth INR 24.71 bln
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* Power Mech Projects gets INR-7.1-bln order from Adani Infra Mgmt Svcs
* Voltas says GST authorities begin inspection at Mumbai office

 

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	262.05	1.40	273.50	247.60
CG Power and Industrial Solutions	681.60	(-)4.00	720.10	659.40
Larsen & Toubro	3434.80	(-)0.10	3570.30	3342.30
Siemens	3129.60	(-)2.40	3248.60	3030.40
Thermax	3227.40	0.20	3295.50	3174.10
Bharat Electronics	426.10	(-)3.00	444.20	415.70
Index	Levels
S&P BSE Capital Goods	67344.39	(-)0.40	69173.90	66328.50
Nifty 50	23114.50	(-)0.20	23453.30	22898.20
S&P BSE Sensex	74532.96	(-)0.00	75636.10	73833.40

 

End

 

Reported by Anshul Choudhary

Edited by Ashish Shirke

 

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