Siemens sounds alarm: Capital goods stocks plunge amid capex concerns
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Capital goods stocks, touted as among the top picks for 2025 by several analysts, tumbled on Friday after Siemens highlighted a lack of meaningful private capex traction in India during its analyst call. The company, a benchmark of sorts for heavy engineering, also noted slower investments in traditional technologies and revealed it is not participating in line-commutated converters (LCC) in India or globally. LCCs, used to convert alternating current (AC) into direct current (DC) and vice versa, are integral to high-voltage DC systems. Shares of Siemens plunged 10% to close at ₹6,869, its second-biggest single-day fall in the last one year. Earlier on the election results day on June 4, the stock fell 12%. ABB India shares fell 6% to close at ₹6,921 while Walchandnagar Industries shares declined 6% to close at ₹262. ETMarkets.com However, analysts believe that the Indian capex cycle is robust and sustainable, and private-sector capex w...