Capital Goods Stocks Outlook
May fall next week if crude oil remains high
This story was originally published at 20:15 IST on 11 September 2026
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MUMBAI – Shares of capital goods companies are likely to fall next week if crude oil prices remain high. Brent crude oil futures again crossed $100 per barrel this week, raising the risk of further commodity price increases and driving up input costs for companies.
The war between the US and Iran has lasted longer than anticipated, which has even started affecting companies. Several companies are struggling to procure raw materials as the Strait of Hormuz largely remains shut. Further, recent clashes between the Iran-backed Houthis and Yemen have put trade through the Red Sea at risk as well.
Because of supply risk, Brent crude futures touched a high of nearly $110 per barrel Friday, with analysts expecting it to keep rising if war in West Asia continues. At 1938 IST, the Brent crude November futures were down nearly 3% at $104.5 per barrel, but this is still more than 40% higher than the pre-war level.
Analysts worry this sharp rise in oil prices could lead to further increases in commodity prices. Already, prices of steel, aluminium, coking coal, among others, had increased last week, a report by IDBI Capital Markets & Securities Ltd. showed.
There are also concerns that high oil prices could lead to higher inflation and affect economic growth in the coming quarters, which could impact demand for capital goods companies. Motilal Oswal Financial Services expects some slowdown in economic growth in the second half of this financial year owing to inflation. "Companies that have so far been operating with relatively cheaper inventory will increasingly face higher replacement costs, and we expect a greater pass-through to consumer prices to begin in 3QFY27 (Oct-Dec) as companies seek to protect margins," the brokerage said in a report.
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* Power Mech gets INR-9.7-bln order from Vedanta Power for plant maintenance
* Kalpataru Projects Sweden arm to sell stake in IPO of step-down co LMG
* L&T secures large order from ONGC for addl development project on west coast
* INTERVIEW: Skipper targets 50% revenue from exports, plans greenfield plant
* Schaeffler India to bring aftermarket brands under one brand from April
* Ajax Engineering CFO Ketan Pendse resigns from post
* Titagarh Rail, Italian co Mermec to end non-operational JV
* Greaves Cotton launches 750 hp engine for firefighting applications
* Carborundum Universal appoints Sriram Seshadri as CFO
* Texmaco Rail gets two orders worth INR 1.31 bln to make rakes, brake vans
* Texmaco Rail & Engineering appoints Shibu Mathews as CFO effective Sat
* Crisil assigns 'AAA' rating to L&T NCDs of INR 115 bln
The 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 | 431.00 | (-)0.00 | 442.20 | 412.60 |
| CG Power and Industrial Solutions | 909.00 | 2.00 | 927.00 | 880.00 |
| Larsen & Toubro | 3930.70 | (-)0.80 | 3987.10 | 3852.50 |
| Siemens | 3957.00 | (-)0.50 | 4022.70 | 3825.50 |
| Thermax | 3682.00 | 1.20 | 3770.50 | 3545.30 |
| Bharat Electronics | 404.35 | (-)0.30 | 409.20 | 396.90 |
| Index | Levels | |||
| S&P BSE Capital Goods | 77540.06 | (-)0.40 | 78383.80 | 75924.30 |
| Nifty 50 | 23398.10 | (-)2.10 | 23575.90 | 23142.50 |
| S&P BSE Sensex | 74781.76 | (-)2.30 | 75376.70 | 73862.70 |
End
US$1 = INR 95.55
Reported by Anshul Choudhary
Edited by Saji George Titus
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