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Informist, Friday, Jul. 3, 2026

 

MUMBAI – Analysts are divided on the direction of capital goods stocks in the near term. While some technical analysts expect the negative sentiment to continue, others expect these stocks to see some gains supported by lower crude oil prices, which would in turn bring down input costs. 

 

So far in 2026, capital goods have emerged as one of the strongest sectors, attracting foreign fund inflows of INR 121.4 billion in February and maintaining positive momentum through Apr–May before turning negative in June, PL Capital said in a report. During June, foreign portfolio investors sold offloaded capital goods shares worth around INR 26 billion, compared with inflows of INR 28 billion in May and outflows of INR 18 billion in June 2025. These flows remain significantly below the long-term-average inflow of INR 19.5 billion, according to the report. 

 

"Core" capital goods companies ABB India and Siemens Energy are expected to report over 10% growth in adjusted sales in the June quarter led by "continued execution of order books, relatively easy comps, sustained high demand from data centers amidst sustaining geopolitical tensions," YES Securities said in an earnings preview report. Meanwhile, margins are expected to be broadly stable supported by operating leverage.

 

Pure-play water technology company, VA Tech Wabag, is expected to report an over 20% on-year growth in sales during the quarter supported by revenue recognition in most of its key orders, the brokerage said. "We do not think that the current West Asia crisis is having any material adverse effect on the company," it said. Similarly, heavy industrial machine manufacturer, Jyoti CNC Automation is seen reporting a 50% jump in sales during the quarter ended June, supported by very strong order book, ramp up in production at Huron facility and continued demand momentum, the brokerage said.

 

Similarly, power equipment company GE Vernova T&D India is seen reporting revenue growth of over 30% and EBITDA margins above 25% supported by strong order book, operating leverage, pricing, and exports, YES Securities said.  

 

Defence companies are expected to perform well in the near term amid tangible demand pipeline, larger orderbooks, improving network-centric warfare discipline and ongoing wallet-share gains with both defence public sector undertakings and global original equipment manufacturers, all set to making 2026-27 (Apr-Mar) an inflection year for them, Kotak Securities said in a report. The brokerage hosted a plant visit and management interaction across multiple Indian aerospace and defence companies, which in turn "reinforced the recurring themes—structural revenue visibility, IDDM-led (Indigenously Designed, Developed and Manufactured) indigenisation tailwinds, rising export optionality and emerging high-volume verticals," it said. 
 

The BSE Capital Goods index fell around 3% this week, extending losses for the second straight week. Defence companies were the top gainers this week, led by Cochin Shipyard, Mazagon Dock Shipbuilders, and Bharat Electronics, which rose 2.8-4.5% on a weekly basis. Meanwhile, power equipment companies were the top laggards, with GE Vernova, Hitachi Energy India, Siemens Energy India, and CG Power and Industrial Solutions falling 5.3-12.9% over the week. The fall in power equipment stocks comes after their recent sharp rally. The sentiment around these stocks was also hit after the government allowed four Chinese power equipment manufacturers to participate in government tenders ‌for critical power projects. 

 

TOP HEADLINES

 

* Titagarh Rail ties up with TuTr Hyperloop for freight mobility solutions
* HC sets aside tribunal order asking India Intl Centre to pay L&T INR 2.27 bln
* Texmaco Rail gets 2 orders worth INR 3.51 bln to supply rakes, wagons
* L&T extends completion date for sale of arm L&T Metro to Sept 30
* Govt grants Miniratna Category-I status to MECON
* RITES gets INR 1.75-bln order from Babasaheb Bhimrao Ambedkar University
* Transformers and Rectifiers gets 'ultra mega order' from Power Grid
* Suzlon bags first order of 105 MW for newly-launched 5 MW wind turbines
* Kalpataru Projects, subsidiaries win new orders worth INR 26 bln
* KEC Intl gets INR-17.54-bln orders across ops in India, international mkts
* Petroleum ministry appoints Atul Gupta as CMD of Engineers India
* RITES, CONCOR in MoU for logistics infrastructure consultancy
* BEML gets $5.35-mln order to export heavy earthmoving equipment to West Asia
* Syrma SGS Tech appoints Jaidit Singh Brar as CEO from Mon
* Ashoka Buildcon gets order to build four-lane highway in Guyana
* Power Grid revokes ban on KEC Intl participating in tenders, contracts
* RITES says Neyveli UP Power ups railway sliding project value to INR 1.5 bln
* L&T arm to hold pref shrs worth INR 1.6 bln in Nabha Power post stake sale

 

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	383.60	(-)4.70	410.10	369.70
CG Power and Industrial Solutions	892.55	(-)5.30	940.80	863.00
Larsen & Toubro	4026.60	(-)4.50	4121.50	3971.50
Siemens	3536.30	(-)2.50	3646.00	3442.60
Thermax	4607.50	(-)4.60	5083.80	4336.80
BHARAT ELECTRONICS LTD	418.05	2.70	427.30	412.50
Index	Levels
S&P BSE Capital Goods	78740.83	(-)2.70	81142.40	77451.40
Nifty 50	24270.85	0.90	24426.30	24174.70
S&P BSE Sensex	77763.91	0.90	78324.70	77429.60

 

End

 

Reported by Arya S. Biju

Edited by Akul Nishant Akhoury

 

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