Capital goods stocks seen lower amid rising input costs

Shares of capital goods companies are likely to remain under pressure in the coming week as rising input costs and geopolitical tensions weigh on sectoral earnings outlook.

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The ongoing US-Iran conflict, now in its third week, has triggered a sharp increase in crude oil and key commodity prices, intensifying cost pressures across the value chain.

Higher crude prices have a direct bearing on production costs, particularly for capital goods manufacturers that rely heavily on energy-intensive processes. Gas shortages, exacerbated by the conflict, are emerging as a significant concern.

According to analysts, gas-based heat treatment—critical for precision component manufacturing—remains largely unavoidable for MSME suppliers, making them especially vulnerable to rising fuel costs.