Capital Goods Stocks Outlook
Stock-specific moves likely on Q1 results
This story was originally published at 19:47 IST on 17 July 2026
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MUMBAI – Stock-specific moves are likely for capital goods stocks next week, with several companies due to report June-quarter earnings. Overall, the BSE Capital Goods index is expected to remain rangebound, as stocks have already rallied on expectations of strong demand.
So far this earnings season, companies have reported strong execution and healthy order books during the June quarter. This week, Polycab India posted an over 32% rise in consolidated net profit, while revenue climbed over 39%, beating analysts' expectations on both revenue and net profit. Bharat Heavy Electricals Thursday reported its first June-quarter net profit after reporting losses in the corresponding quarter for the previous seven years. BHEL's order book also rose 27% on year to INR 2.6 trillion, impressing analysts.
"Along with the current pipeline, opportunities in nuclear, coal gasification, and green hydrogen are expected to provide new growth avenues," Prabhudas Lilladher said in a report about Reliance Industries. "... opportunities across HVDC (high-voltage direct current) & Green Energy Corridors, defence and rail mobility are expected to drive incremental order inflows and strengthen diversification across end markets."
Brokerages also expect demand for cables to remain strong after following Polycab's Jun-quarter results, as the company delivered robust growth despite higher copper and aluminium prices. During the conference call with analysts, Polycab's management highlighted the potential for strong demand for cables and wires driven by investments in data centres, the defence sector, and electric vehicle charging infrastructure. Over the next 7-8 years, the company expects to generate revenue of INR 200 billion to INR 250 billion from data centres.
Key companies due to report June-quarter earnings next week include Action Construction Equipment, Gabriel India, HEG, and CG Power and Industrial Solutions. While revenue growth is expected to be strong, margins may come under pressure due to a sharp rise in input costs following the US-Iran conflict, which has pushed commodity prices higher. Further, stretched valuations across segments, especially the defence and transmission and distribution sectors, may prompt investors to book profits.
TOP HEADLINES
* BHEL's order book up over 27% on year at INR 2.6 trillion in Apr-Jun
* Earnings Review: BHEL posts 1st Q1 PAT after 7 years on improved revenues
* Earnings Review: BHEL posts 1st Q1 PAT after 7 years on improved revenues
* HC OKs arbitral award asking IOC to pay INR 6.6 bln to Toyo-L&T consortium
* Earnings Outlook: Brokers mixed on BHEL Q1 PAT, but see revenue rising
* Texmaco Rail CFO tenders resignation for 'personal reasons'
* KEC Intl gets orders worth INR 11.80 bln across segments
* Kotak Sec rejigs recommended portfolio; adds SBI Life, TCS to large-cap
* Timken India gets BIS licenses for 2 products across 2 manufacturing units
* RITES gets consultation order of INR 792 mln from Patna Metro Rail
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 | 422.00 | 6.80 | 455.80 | 403.40 |
| CG Power and Industrial Solutions | 905.00 | (-)1.30 | 938.50 | 883.60 |
| Larsen & Toubro | 3814.50 | (-)3.30 | 3864.90 | 3742.50 |
| Siemens | 3658.80 | 4.60 | 3730.00 | 3579.20 |
| Thermax | 4662.00 | (-)3.10 | 4750.70 | 4500.70 |
| Bharat Electronics | 409.45 | (-)1.30 | 414.70 | 402.50 |
| Index | Levels | |||
| S&P BSE Capital Goods | 78121.89 | (-)1.20 | 79893.40 | 77043.30 |
| Nifty 50 | 24334.30 | 0.50 | 24535.10 | 23998.60 |
| S&P BSE Sensex | 78151.45 | 0.80 | 78888.60 | 76939.50 |
End
Reported by Anshul Choudhary
Edited by Saji George Titus
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