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Informist, Friday, Apr. 10, 2026

MUMBAI – Shares of capital goods companies are likely to move higher next week if the truce announced between the US and Iran continues. Negotiators from the US and Iran are expected to meet in Islamabad, Pakistan, this weekend to discuss conditions for the ceasefire, the outcome of which is likely to decide the direction for stocks next week.

Shares of capital goods companies recorded a sharp recovery this week after the US and Iran announced a two-week ceasefire. While the Strait of Hormuz remains shut, the ceasefire has raised expectations the conflict may come to an end soon. The BSE Capital Goods index rose nearly 9% this week after falling 6% in the preceding weeks since the war began.

Shares of capital goods companies may move in range if there is no positive trigger from the US-Iran talks as the war is expected to affect capital expenditure from the government and private players. Already, the war has likely hit execution of orders during the March quarter, analysts said.

"Geopolitical tensions lead to slippage in execution, supply chain disruptions and delay in order finalisations, which are likely to impact the export business of many of our coverage companies," brokerage Prabhudas Lilladher said in its preview report for capital goods sector. The March quarter earnings for the sector is likely to be mixed with strong performance from the transmission and distrubition companies but earnings of defence companies are seen weak due to disruptions from the US-Iran war, the brokerage said.

Market participants are likely to also take cues from the March quarter earnings. Estimates from eight brokerages showed the cumulative net profit of 16 capital goods companies in the Nifty 200 index is likely to rise 15% on year during the March quarter. The 16 companies' cumulative revenue is expected to rise 13% on year. Among major earnings next week, Elecon Engineering Co. is scheduled to report its quarterly results on Wednesday.

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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:

End

Reported by Anshul Choudhary

Edited by Akul Nishant Akhoury

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