Capital Goods index hits over 6-year low; L&T down 51% in 2-months

Analysts anticipate some amount of weakness on the execution front in H1FY21 due to current challenges in manpower movement.

Shares of engineering and capital goods companies were under pressure on Wednesday with the S&P BSE Capital Goods index hitting an over six-year low as the outbreak of coronavirus (Covid-19) outbreak, analysts say, may hit the infra capex worse than 2008 crisis.

At 10:18 am, the S&P BSE Capital Goods index, the top loser among the sectoral indices, was down 2.7 per cent at 9,641, as compared to a 0.16 per cent decline in the S&P BSE Sensex. The capital index hit an intra-day low of 9,499, its lowest level since February 18, 2014 on the BSE.

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