Meanwhile, India’s capital goods manufacturing industry serves as a strong base to several sectors, such as engineering, construction, infrastructure, power, consumer goods, etc. We also analyze the market’s performance on Friday to understand what may lie ahead for the stock indices in the coming days.
ITC Ltd
Current price: ₹409
Target price: ₹495 in 12 months
Stop loss: ₹365
Why it’s recommended: ITC is one of the biggest FMCG companies in India, which has a broad portfolio of businesses in the fast-moving consumer goods, paperboard and packaging, agribusiness, and information technology sectors. The company is the market leader in India’s paperboard and packaging industry. ITC Consumer Goods has built a solid reputation over the last 10 years with about 25 premium Indian brands, including Yippee, Sunfeast, and Aashirvaad.
In Q1FY26, strong growth was registered in gross revenue, which stood at ₹ ₹23,007 crore, up 20% year-on-year, driven by cigarettes, agribusiness, and FMCG. Ebitda stood at ₹6,816, up 4.2% on-year, whereas PAT stood at ₹5,343 crore, up by 4.9% on-year. The cigarettes segment revenue grew by 7.6% on-year as of Q1FY26 and stood at ₹8,520 crore, whereas the FMCG segment grew by 5.2% on-year and stood at ₹5,777 crore. Agribusiness has done very well in Q1FY26, as it has registered an astounding growth of 38.9% on-year and stood at ₹9,685 crore, driven by trading opportunities in bulk commodities and exports of leaf tobacco.
The company has a competitive advantage due to its vertically integrated supply chain and a strong network of 27,500 farmers covering 140,000 acres of certified organic land in 10 states. In addition, the company paid ₹50.6 crore to acquire Mother Sparsh Baby Care Pvt. Ltd (also known as Mother Sparsh), a high-end ayurvedic and natural baby care provider. ITC has increased its stake from 26.50% to 39.47%. ITC spent ₹81 crore, or ₹126 crore, over the course of two to three years to acquire the remaining 73.5% of Mother Sparsh. The company has entered into a new segment of the FoodTech business under its ITC Next strategy; this segment’s GMV crossed ₹100 crore in FY25 with 60 cloud kitchens across five cities.
Risk Factor: The company’s tobacco division is heavily regulated. The business may be significantly impacted by any regulatory development. They make a major profit from the tobacco business. The company is exposed to raw material risk as agricultural commodities are vulnerable to climate change. Crop yield variation may harm the agribusiness operations of the company.
Current price: ₹208
Target price: ₹265 in 12 months
Stop loss: ₹179
Why it’s recommended: BHEL, a major player in the capital goods industry, has been a public sector undertaking of the Indian government since 1964. The company now serves a wide range of power and industry sectors, providing products, systems, and services for power generation (thermal, hydro, gas, nuclear, and solar PV), transmission, transportation, defence, aerospace, oil and gas, and other strategic sectors both domestically and internationally. In addition to its presence in 91 countries, BHEL has established 16 manufacturing facilities, two repair facilities, five research institutes, and 15 centres of excellence in India and other countries.
The company generated revenue of ₹28,339 crore from operations in FY25, registering a growth of 18.61% on-year. In Q1FY26, revenue from operations stood at ₹5,486.91 crore. It increased its Ebitda to ₹1,707 crore in FY25, a growth of 47.28% on-year, while its PAT stood at ₹534 crore, an increase of 89.36% on-year. In Q1FY26, the company registered the highest-ever outstanding order book of ₹2,04,375 crore. It has successfully grown its order book by 17.76% CAGR since FY21. In FY25, BHEL has secured orders aggregating to ₹81,349 crore in the power sector, which includes the company’s highest-ever order booking in the thermal power segment.
In FY25, it added 3,850MW of capacity to utility power projects, including 700MW of hydropower and 3,150MW of thermal power. BHEL has maintained its leadership position in the Indian thermal power industry by winning contracts for twelve 800MW thermal power units totalling 9.6GW. It maintains a domestic market share of 56% in nuclear and 46% in hydro. In FY25, the company commissioned 8.1GW of power capacity into operation. Furthermore, it is expected that India’s electrical equipment market share will increase at a CAGR of 11.68%, from $52.98 billion in 2022 to $125 billion in 2027.
Risk Factor: It is exposed to volatility in the power sector and structural issues such as delays in land acquisition and environmental clearances, availability of fuel and funding, and the weak financial position of many state power utilities, which were among its key clients. Moreover, 80% of the order book consists of power sector projects. It has high working capital requirements with sizeable receivables, including contract assets and inventory levels. It faces the risk of doubtful receivables.
Stock market recap
Friday’s trading session began on a bearish note, with broader market indices ending in the red for three consecutive trading sessions. The Nifty 50 opened weak at 24,466.70, down -34.20 points from the previous close of 24,500.90, and slipped further to close at 24,426.85. This marked a decline of -74.05 points, or -0.30%, with the index finishing below the 20-day, 50-day, and 100-day EMAs but still holding above the 200-day EMAs on the daily chart.
The BSE Sensex mirrored the downward trend, opening at 80,010.83 and closing at 79,809.65, registering a decline of -270.92 points, or -0.34%. Momentum indicators also reflected weakening sentiment, with the Nifty 50’s Relative Strength Index (RSI) at 39.14 and the Sensex RSI at 37.83, both comfortably below the overbought threshold of 70. The Sensex breached all EMAs as it went below the 200-day EMA as well, but recovered later and ended above the 200-day EMA. The Nifty Bank Index was not spared either, closing at 53,655.65 after shedding -164.70 points, or -0.31%.
The majority of the sectoral indices ended the day in the red, except for a few gainers. The Nifty FMCG Index was the top gainer, closing at 56,141.85, up by 528.90 points, or 0.95%. Colgate-Palmolive (India) Ltd led the gains with a 3.05% increase, followed by other FMCG stocks, including United Spirits, which gained 2.30%, and ITC, which rose by 2.21%. The Nifty Media Index was also among the top gainers, closing at 1,612.00, up by 5.65 points, or 0.35%. Tips Music Ltd led the gains with a 3.1% increase, followed by other media stocks, including Nazara Technologies Ltd, which gained 1.90%, and DB Corp Ltd, which rose by 1.30%.
Among the major losers, the Nifty Capital Markets Index plunged the most on Friday’s trading session. The index decreased by -76.40 points, or -1.80%, closing at 4,092.35. BSE Ltd was the major loser, dropping -3.8%; Motilal Oswal Financial Services declined -3.6%, and KFin Technologies Ltd fell -2.7%. Another major laggard was the Nifty Realty Index, which closed at 870.75, losing -11.75 points, or -1.3%. Major losers include Sobha Ltd, Brigade Enterprises Ltd, and Godrej Properties Ltd, whose shares declined by up to -3.40%.
Asian markets were trading on a mixed note on Friday, with the Shanghai Composite Index closing at 3,857.92, gaining 14.33 points, or 0.37%. South Korea’s KOSPI Index closed at 3,186.01, down -10.31 points, or -0.32%. Japan’s Nikkei 225 Index also closed on a bearish note at 42,718.47, lost -110.32 points, or -0.26%. On the other hand, Hong Kong’s Hang Seng Index ended at 25,077.62, gaining 78.8 points, or 0.32%. Shenzhen component index closed at 12,696.15, gained 124.78 points or 0.99%. The US Dow Jones Futures were trading at 45,575, down -132 points, or -0.29%, as of 5.03 p.m. IST.
This week, the Nifty index declined steeply, down by -1.78%, or -443.25 points, closing below the 24,450 level. This decline came after the US levied additional 25% tariffs, which came into effect on 27 August 2025. Next week, markets may see a revival as India records its five-quarter high GDP growth rate of 7.8% in Q1FY26, beating estimates of the Reserve Bank of India of 6.5%.
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