India's capital goods companies extend declines on growth challenges after budget

ABB India

03/02/2025 05:00

** Capital goods firms slide between 4% and 7%, extending
declines from Saturday's budget session
    ** India's FY26 capex outlay of 11.2 trln rupees ($128.48
billion) slightly higher than 10.18 trln rupees revised for
current fiscal
    ** JP Morgan calls capex growth "underwhelming"; Bernstein
wonders if this is the "end" of India's capex cycle
    ** Larsen & Toubro  LART.NS , Hitachi Energy India
 HITN.NS , Siemens  SIEM.NS , ABB India  ABB.NS , Thermax
 THMX.NS  slip 4.1%, 7.4%, 5.1%, 6% and 4.4%, respectively
    ** L&T shed 7.5%, HITN and SIEM slumped 11% each, ABB India
lost 12% and Thermax dropped 4% in last two sessions
    ** Motilal Oswal says industrial sector will face challenges
in growing inflows at the pace it did until now
    ** Downgrades Hitachi, Thermax to "sell" from "neutral" and
Siemens to "neutral" from "buy"
    ** JP Morgan says muted infra capex growth "sentiment
negative" for L&T

($1 = 87.1700 Indian rupees)

 (Reporting by Sethuraman NR in Bengaluru)
 ((Sethuraman.NR@thomsonreuters.com; (+91 9945291420); Reuters
Messaging: nallur.sethuraman.thomsonreuters.com@reuters.net))