Stock Return: In the last 10 years of PM Modi’s tenure, at least five stocks in the capital goods sector have increased by more than 1,000%. According to market experts, the National Manufacturing Policy, liberalization of FDI norms and continued focus on infrastructure development have boosted the capital goods and industrial sector. Timken India has emerged as the topper in the BSE Capital Goods Index with a gain of 1,736% in the last 10 years. It is followed by Bharat Electronics (1,587%), Grindwell Norton (1,282%) and Honeywell Automation (1,259%).
“In the last decade, several reforms and schemes in India have significantly contributed to the growth of sectors such as consumer durables, industrials, capital goods and real estate,” said Alok Aggarwal, head quant and fund manager, Alchemy Capital Management.
Aggarwal said, “It has now become easier for industrial and capital goods companies to do business as several initiatives have been taken to improve the business environment, including simplification of rules, reduction in bureaucratic red tape and improvement in the legal framework. Improvements are included.”
These stocks also took off
According to the data, companies like Praj Industries, V-Guard Industries, Carborundum Universal, Schaeffler India, Finolex Cables, ABB India, Siemens, Kalpataru Projects International, SKF India and Bharat Forge also posted returns between 500% and 1,000% during the same period. Have given. BSE Capital Goods Index, on the other hand, gained 361% in the last 10 years.
According to Care Ratings, 11 of the 21 selected sectors saw double-digit growth in net sales in FY24, and these included aviation, automobile, cement, capital goods, infrastructure, realty, hospitality sectors.
High expectations from these sectors
“India is witnessing an increase in capex. Companies across the value chain in power generation and transmission, data centres, real estate and renewable energy are doing well,” said Dixit Mittal, fund manager and senior equity research analyst, LIC Mutual Fund Asset Management. He said the ‘China Plus One’ strategy adopted by developed countries could drive long-term growth in Indian exports. With elections approaching in many major global economies, market analysts believe The possible stance of the US Fed and other central banks should be kept an eye on.
