Inox Wind, ABB, IRB Infra: Industrial, capital goods stocks rally 10% ahead of Budget 2025; check what L&T chairman said

Last seen, the The BSE CAPITAL GOODS index was trading at 65,360.06, up 830.29 points, 1.29%, while the BSE Industrials index was trading at 13,992.32, up 160.56 points, or 1.16%.

Among individual names, ideaForge, Inox Wind, Titagarh Rail Systems, Kaynes Technology India, surged up to 10%.

The indices were the leading gainers on Friday, January 31. The BSE CAPITAL GOODS index ended at 64,529.77, up 2,417.47 points, or 3.89%. The BSE Industrials closed the session at 13,831.76, up 481.82 points, or 3.61%.

Infra major Larsen & Toubro (L&T) rallied over 4% in the trade on Friday. The rally could be attributed to the company's strong Q3 numbers and record order inflows. However, the company's outlook and its Budget wishlist, too, can be attributed to the gains in industrial and infra stocks.

S.N. Subrahmanyan, Chairman, and Managing Director said: The upcoming Union Budget is expected to emphasise building infrastructure, adoption of technology, improving learning efficacy and skill development, and policy continuity towards energy transition, which will provide the necessary impetus to the Indian economy. We expect the Middle East to continue to strengthen its physical and digital infrastructure besides continuing to monetise its oil & gas assets. Amid this backdrop, the company will continue to pursue excellence and leverage its strengths to seize new opportunities while remaining resilient.”

On the outlook, the company said, "The Indian economy is poised for steady growth, with projections indicating a GDP growth rate of 6.5-6.8% for the fiscal year 2024-25. Rural consumption has remained encouraging, supported by strong agricultural performance due to a favourable monsoon. The services sector continues to be a key driver of growth."

Government spending has also started to rebound post the Centre and various state elections, which will give necessary impetus to the infrastructure sector's spending in the near term, the company added.

As India strives to achieve the vision of a ‘Viksit Bharat’ by 2047, the government is expected to maintain its strong commitment to infrastructure investments, recognising it as a key driver of broader economic growth. The forthcoming Union Budget is likely to strike a balance between policy continuity and fiscal discipline.

"India would still be one of the fastest-growing major economies in the world, although the pace and sustainability of the growth trend could be shaped by how the country navigates challenges around global and financial market volatility, potential implications of intensified trade wars, and domestic inflationary impulses," the statement added.