Stock market update: L&T, Havells boost capital goods index

NEW DELHI: Healthy gains in Elgi Equipments (up 6.71 per cent), Larsen & Toubro (L&T) (up 6.02 per cent), Lakshmi Machine Works (up 2.85 per cent), Carborundum Universal (up 2.80 per cent) and Havells India (up 2.31 per cent) boosted capital goods index in Monday's session.

The BSE Capital Goods index was trading 3.70 per cent up at 18,516.07 around 01:15 pm.

Shares of L&T surged after global brokerages, including CLSA, maintained a bullish view on Larsen & Toubro after the company on Saturday announced that it would take up a proposal for share buyback on August 23, Thursday.

CLSA said that the buyback will support return on equity (RoE) of the company. “It may not be the last buyback as cash on books stand at $2.1 billion. We maintain ‘buy’ on L&T with a target price of Rs 1,730, ” CLSA added.

Shares of CG Power and Industrial Solutions (up 1.77 per cent), ABB India (up 1.34 per cent), SKF India (up 1.20 per cent), Bharat Heavy Electricals (up 1.15 per cent) and Sadbhav Engineering (up 1.04 per cent) also appeared among the top gainers in the index.

BEML (up 0.86 per cent), Finolex Cables (up 0.75 per cent), GE T&D India (up 0.65 per cent), Bharat Electronics (up 0.60 per cent), Schaeffler India (up 0.56 per cent) and Siemens (up 0.21 per cent) too were trading with gains.

However, Graphite India (down 3.86 per cent), AIA Engineering (down 1.58 per cent), HEG (down 1.38 per cent), NBCC (India) (down 0.88 per cent), Suzlon Energy (down 0.83 per cent), Kalpataru Power Transmissions (down 0.60 per cent), V-Guard Industries (down 0.58 per cent), Thermax (down 0.50 per cent) and Dilip Buildcon (down 0.14 per cent) were in the negative zone.

BSE Sensex was up 348.31 points at 38,296.19, with 25 stocks advancing and 6 declining.

Besides Larsen & Toubro, Reliance Industries and HDFC twins were the top contributors to the rally in the Sensex index.