Capital goods stocks decline sharply as Sensex gains ground

The BSE Capital Goods index emerged as the worst performer among sectoral indices on Friday, sliding 3.3 per cent in mid-morning trading. The weakness in the capital goods space stood in sharp contrast to the overall market sentiment, with the BSE Sensex advancing 0.84 per cent during the same period.

Several heavyweight stocks within the capital goods sector bore the brunt of selling pressure. Thermax, Apar Electronics, and Astral Poly Technik all recorded significant declines, with losses reaching up to 20 per cent for some counters. The broad-based selloff across the segment suggested renewed investor caution toward capital goods stocks despite the resilience shown elsewhere in the market.

The divergence between the capital goods index and the broader market indices indicated selective profit-taking in the sector, potentially driven by concerns over valuations or near-term business prospects. Investors appeared to be reassessing positions in the segment even as they maintained confidence in other sectors of the economy.