Capital Goods Sector

The capital goods sector's long-term outlook remains strong across segments as companies focus on energy transition globally, on top of manufacturing localisation and infra development pace in India.

The new policy will replace the existing National Capital Goods Policy 2016

Bharat Electronics, Larsen & Toubro, Hindustan Aeronautics, CG Power, Bharat Heavy Electricals and Schaeffler India have rallied between 7% and 9% in intra-day trade

In the past six months, the BSE Capital Goods index has outperformed the market by surging 31%, as against a 11% rally in the S&P BSE Sensex.

The country's exports of goods and services rose marginally by 0.4 per cent to USD 765.6 billion in 2023 despite global economic uncertainties, according to the commerce ministry data. Sectors which helped keep India's exports afloat include electronics, pharmaceuticals, cotton yarn, fabrics and made-ups; ceramic products, meat, dairy and poultry products, fruits and vegetables and information technology. Goods exports in the last calendar year, however, contracted by 4.71 per cent to USD 431.9 billion while services exports are estimated to have risen by 7.88 per cent to USD 333.8 billion, the data showed. The merchandise imports also dipped by 7 per cent to USD 667.73 billion last year as against USD 720.2 billion in 2022. The latest data for the services sector released by the RBI is for November 2023. The data for December 2023 is an estimation by the ministry. The main export destinations for India are the US, the UAE, the Netherlands, Bangladesh, the UK and Germany. Goods .

So far in the calendar year 2023 (CY23), the stock of this engineering company has surged 30.6 per cent, as against 7 per cent rise in the S&P BSE Sensex

So far in this calendar year (CY23), shares of L&T surged 24 per cent, as against 9.1 per cent gain in the S&P BSE Sensex

Cheaper raw material, lower freight costs, better supply chain management to help sector: Analysts

ITC and Tata Motors have zoomed 33 per cent each since December 1, and have led the rally in the 30-pack index

The company reported 38.7 per cent YoY growth in Q4FY23 net profit at Rs 471.80 crore, backed by 28.6 per cent rise in revenue at Rs 4,974.40 crore.

Helped by a property upcycle, analysts at Jefferies believe various government initiatives are likely to drive capex going ahead

Analysts at Emkay Global Financial Services uphold their constructive view on the sector, driven by its strong tender pipeline, softening commodity prices and expectation of good order inflow growth.

Timken India, Praj Industries, AIA Engineering and ABB were among other individual stocks from the S&P BSE Capital Goods index, up 4 - 5 per cent each.

Here is the list of leaders from Small Finance Banks on panel for the BS BFSI Insight Summit 2022

Revenue growth estimates have moderated post Q2 but the bottom may be close

Key monitorables include tender pipeline and emerging supply-chain scenario, say analysts and players

Nove comes after customs dept observed several consignments from South-East Asia in which rules of origin were flouted, and the FTA route was being used to evade duties

TMSEp265: Fintechs, Q&A with Roche family, capital goods stocks, SOVA virus

Why are regulators uneasy about fintechs' dominance? Can Roche stay ahead of the competition in the next 125 yrs? Is a re-rating on the cards for capital goods stocks? What is SOVA virus? Answers here

Signs of renewed capex and improving margins; high inflation, supply-chain disruptions and black-swan events among risks

Which sectors are on FPIs' radar as they return to India?

Investors are looking at striking some gold as FIIs return to equity markets. Analysts are eying select sectors that are expected to garner most attention from global buyers. Here are the top picks