Hitachi Energy, ABB India, and Apar Industries are among nearly a dozen stocks from the capital goods space that have witnessed strong buying momentum in 2026, even as the broader market faces extreme volatility.
The pickup in sentiment after a muted show in the previous year, recovery in earnings and steady order inflows, coupled with the government announcing record capex in the Union Budget 2026, have aided a strong rally.
In addition, the India-US and India-EU trade deals have improved the export outlook for the companies, while the softening of commodity prices from recent highs has also improved the margin outlook.
The combination of these factors has not only boosted select stocks to record highs but has also led analysts to remain bullish on the sector outlook, prompting a 3.5% rebound in the BSE Capital Goods index in less than two months.
Hitachi Energy, Apar Industries lead as strong results trigger buying momentum
Hitachi Energy emerged as the standout performer, with a 33% jump in 2026 so far. The stock is seeing major acceleration following the release of its December quarter numbers.
Apar Industries, too, saw a strong spike in demand for its shares on Dalal Street post the release of its Q3 numbers in late January, leading it to rise 34% in February so far, which contributed to a 28% jump year-to-date.
After delivering strong volume growth and robust margins, Astral saw its shares rise to a fresh 52-week high earlier this month, thus leading to an 18% spike in 2026.
GE Vernova T&D India shares have delivered an 18% return so far, building on a 51% rally in the previous year.
Supreme Industries made a strong comeback this year, rising 17% so far and recovering over half of the 29% losses registered in 2025. Elgi Equipments, too, rebounded 15% after registering its first annual drop in five years during 2025.
Other stocks such as Kirloskar Oil, ABB India, CG Power and Industrial Solutions, and Cummins India have all jumped between 10% and 14%.
Motilal Oswal sees strong 3Q momentum
According to domestic brokerage firm Motilal Oswal, an analysis of 30 key companies in the industrials, defence, and railways segments indicates that 3QFY26 reflected a broadly positive outlook, with resilient profitability and steady ordering momentum.
The outlook is supported by improved budgetary allocation for capex and continued spending across high-growth areas such as renewables, data centres, and defence across both domestic and international markets, while private capex remains selective.
The brokerage said that ordering remained healthy in 3QFY26 across EPC projects from the Middle East, T&D, renewables, defence, real estate, and data
Motilal maintained its selective stance on the sector and prefers companies with strong execution growth and the ability to sustain margins amid commodity volatility.
It reiterated its positive stance on L&T, Cummins India, and Siemens Energy in the large-cap space, and Kirloskar Oil Engines and Kalpataru Projects International in the mid- and small-cap segments. In the defence sector, Bharat Heavy Electricals remains its top pick.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
