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Shares of capital goods companies are trading higher by up to 2% in morning deals after the Index of Industrial Production (IIP) increased by 4.1% in April, against a growth of 2.8% a year ago and 2.5% in March this year, as per the Industrial Production data which was released on Friday, June 12.
Larsen and Toubro (L&T), Bharat Heavy Electricals Limited (BHEL), ABB India, Thermax, Alstom T&D India, Alstom India and Siemens are up between 1-2% on the BSE.
S&P BSE Capital Goods index, the largest gainer among sectoral indices, is up 1.45% or 240 points at 16,830.99 compared to 0.63% or 164 points advance in the benchmark S&P BSE Sensex at 10:00 hours.
The IIP jumped to a two-month high on the back of 5.1% growth in manufacturing and 11.1% expansion in capital goods. The manufacturing sector contributes 75% to the index.
Meanwhile, the consumer durables segment posted positive growth for the first time in over two years in April at 1.3% against a negative 4.7% in the previous month, showing a slow pick up in demand.
