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Informist, Friday, Sept. 4, 2026

 

MUMBAI – Shares of capital goods companies are likely to face selling pressure amid high valuations and concerns of high commodity costs affecting margins. Crude oil prices have again crossed $90 per barrel this week, which has increased the risk to margins of companies in the ongoing quarter.

 

Friday, the November futures for Brent crude oil hovered around $95 per barrel, up over 6% this week and still more than 30% higher than the level before the US-Iran war. The two countries carried out missile attacks on each other's military assets this week, shattering hopes of a resolution to the months-long war that will likely push commodity prices even higher.

 

Manufacturing sector profits can weaken due to higher input cost pressures not being fully passed on to end users, YES Bank said in a report Monday. Beyond this, El Nino weather patterns can exert a downward pressure on agricultural growth.

 

Some analysts are tracking announcements of price hikes as earnings growth going forward will depend on whether companies manage to pass on higher costs to clients and consumers. "...further hikes remain possible depending on commodity prices and customer acceptance," Motilal Oswal Financial Services said in a report.

 

Some analysts are concerned high crude oil prices may impact capital expenditure plans of the government, and it may limit spending to support higher subsidiaries like for fertiliser companies. For now, capital expenditure has remained strong, with the latest figures showing the government spent INR 1.1 trillion in July, up 54% from a year ago. So far this financial year, the government spending on capital expenditure was up nearly 30%.

 

TOP HEADLINES

* BEML gets INR 1.81 bln order to manufacture Vande Bharat trainsets

* Ashoka Buildcon gets INR 6-bln order from Rail Vikas for Uttarakhand line
* Texmaco Rail gets $135 mln letter of award for diesel, electric locomotives
* KNR Constructions gets INR-1.58-bln order for Telangana flyovers, underpass
* Transformers and Rectifiers bags 'large' order from Megha Engineering
* John Cockerill gets contract worth around INR 2 bln from Tanzanian co

* Bondada Engg incorporates arm for fibre optic infra to tap data centre boom
* Kirloskar Oil partners with DEUTZ to expand 1.6-ltr engine platform globally
* Syrma SGS JV inaugurates electronics manufacturing plant in Bengaluru
* Varroc Engg arm files fresh case against French co, withdraws pending appeal

 

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	431.10	0.10	443.20	423.20
CG Power and Industrial Solutions	891.00	0.20	904.70	881.20
Larsen & Toubro	3964.10	(-)2.00	4005.20	3943.60
Siemens	3977.00	(-)2.70	4065.60	3929.80
Thermax	3637.60	(-)7.80	3822.00	3524.80
Bharat Electronics	405.35	(-)1.60	415.70	400.20
Index	Levels
S&P BSE Capital Goods	77868.58	(-)2.10	78792.10	77392.70
Nifty 50	23897.70	(-)1.20	24043.00	23823.20
S&P BSE Sensex	76515.43	(-)1.00	77005.70	76270.30

 

End

 

US$1 = INR 94.48

 

Reported by Anshul Choudhary

Edited by Shubhayan Bhattacharya

 

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