In past five trading sessions, the capital goods index has rallied 5.2% against 2% rise in the benchmark index.
Suzlon Energy, Bharat Electronics, CG Power and Industrial Solutions, BEML and AIA Engineering from the index have gain more than 2% each, while Larsen & Toubro (L&T), Bharat Heavy Electricals Limited (BHEL), Carborundum Universal, Thermax and Fag Bearing in the range of 1%-2% today.
BHEL hit a 52-week high of Rs 169 in intra-day trade, surged 7% in past four trading sessions. The state-owned company on Wednesday said that it has commenced commercial operation of its first 800 MW unit - highest-rating coal-based supercritical thermal power plant.
The milestone was achieved for the first unit of the 2x800 MW Yeramarus thermal power station of Raichur Power Corporation Limited (RPCL), in Raichur district of Karnataka.
L&T was up 1% at Rs 1,564 after the company said L&T Electrical & Automation FZE has won an order worth Rs 500 crore from Qatar Rail Company for phase 1 of Doha metro. The stock hit an intra-day high of Rs 1,574, trading close to its 52-week high of Rs 1,615 touched on July 27, 2016.
According to Sharekhan, during Q3FY2017, most of the project-based companies delivered upbeat order inflow guidance on the back of strong visibility from the international markets
while expecting the domestic market to remain submissive.
“Slower order execution, high working capital requirement and a subdued domestic macro-economic environment will affect project-based companies. However, on the positive side, falling interest rates and increased government spending on infrastructure development will help kick start the domestic capex cycle at the earliest,” the brokerage firm said in Q3FY17 earnings review.