Capital Goods Stocks Outlook
May see limited gain amid high stock valuations
This story was originally published at 17:05 IST on 25 June 2026
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MUMBAI – Shares of capital goods companies may move higher next week as risks of high input costs have come down after crude oil prices fell sharply. However, high stock valuations and uncertainty around capital expenditure after the distruption caused by the US-Iran war may push investors to sell stocks at higher levels.
Brent crude oil futures contracts have fallen to pre-war levels, easing concern of high raw material costs. However, uncertainty on when demand will pick up persists. Nuvama Wealth Management, in a strategy report Monday, said private players may have to limit their spending on capital expenditure for some time as the war has hit companies' working capital.
The brokerage's outlook on capital expenditure from the government is also weak. "...the government is plagued with weak tax revenue, increased subsidy burden, and state governments are now focussed on welfare schemes. This too will weigh on their capex growth," it said.
Nuvama also pointed to slow growth in order inflows, which may hit future revenue growth. "...(For industrials) the moderation in order inflows is across the board, especially in power sector which was the stronger growth pocket until now. Thus, from a fundamentals as well as valuations perspective, we think the gap is unusual and should mean revert as some of the supply side disruptions fade."
The BSE Capital Goods index fell 2.6% in the week after rising nearly 6% the previous week. This week, Kirloskar Oil Engines was the top gainer, rising over 23?ter it got an order for 96 power systems for data centres. Among losers, GE Vernova T&D India, Carborundum Universal, and Hitachi Energy India were down 8-9% this week.
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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 | 402.70 | (-)2.80 | 411.20 | 396.80 |
| CG Power and Industrial Solutions | 942.10 | (-)2.20 | 966.30 | 907.30 |
| Larsen & Toubro | 4,216.40 | 0.20 | 4,310.50 | 4,140.10 |
| Siemens | 3,627.90 | (-)3.50 | 3,714.90 | 3,528.10 |
| Thermax | 4,828.80 | 2.70 | 5,011.20 | 4,615.80 |
| Bharat Electronics | 407.20 | (-)4.60 | 418.50 | 400.40 |
| Index | Level | |||
| S&P BSE Capital Goods | 80938.07 | (-)3.20 | 82480.20 | 80076.80 |
| Nifty 50 | 24056.00 | 0.20 | 24341.50 | 23896.30 |
| S&P BSE Sensex | 77100.47 | 0.40 | 78109.00 | 76488.90 |
End
Reported by Anshul Choudhary
Edited by Rajeev Pai
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