Among the stocks in the capital goods sector, Timken India emerged as the top gainer with a rally of 1,736% in the past decade
At least five stocks from the capital goods space have surged more than 1,000% in the past 10 years. According to market watchers, the National Manufacturing Policy, liberalisation of FDI norms and continuous focus on infrastructure development have boosted the capital goods and industrial sector.
With a rally of 1,736% in the past decade, Timken India emerged as the top gainer in the BSE Capital Goods index. It was followed by Bharat Electronics (up 1,587%), Grindwell Norton (up 1,282%) and Honeywell Automation (up 1,259%).
Sharing his views on the outperformance of the capital goods sector, Alok Agarwal, Head-Quant and Fund Manager, Alchemy Capital Management said, “Over the past decade, several reforms and schemes in India have contributed significantly to the growth of sectors such as consumer durables, industrials, capital goods, and real estate.”
He added that the industrial and capital goods also benefitted from the implementation of Goods and Services Tax (GST). “Industrial and capital goods firms now find it simpler to conduct business thanks to a number of initiatives aimed at improving the business climate, including the simplification of regulations, the reduction of bureaucratic red tape and the improvement of the legal framework,” Agarwal said.
Data further highlighted that players such as Praj Industries, V-Guard Industries, Carborundum Universal, Schaeffler India, Finolex Cables, ABB India, Siemens, Kalpataru Projects International, SKF India and Bharat Forge also gained somewhere between 500%-1,000% during the same period. On the other hand, the BSE Capital Goods index gained 361% in the past 10 years.