BSE Capital Goods index hits all-time high; BEL, HAL jump up to 5%

Stock market today: The S&P BSE Capital Goods index hit an all-time high of 62,520.95 levels in the intraday trade on Tuesday, April 2, on the back of healthy buying in most of its constituents. Some of the top gainers in the index included Bharat Electronics (BEL), Lakshmi Machine Works, Hindustan Aeronautics (HAL), and Schaeffler India, among others.

These stocks traded with gains in the range of 3.5 per cent to 4.99 per cent. Other gainers in the index were SKF India (up 2 per cent), Grindwell Norton (up 2.44 per cent), and Suzlon Energy (up 1.69 per cent).

At close, the index stood at 62,433.75, up 441.68 points, or 0.71 per cent. In comparison, the S&P BSE Sensex stood at 73,903.91, down 110.64 points, or 0.15 per cent. 

Shares such as HAL and BEL buzzed in the trade after Jefferies' bullish stance on India's defence sector. In its note, the global brokerage said that the global geo-political tensions and India’s rising focus on self-reliance are fueling order flow and revenue growth for domestic defence companies.

Jefferies initiated coverage on Hindustan Aeronautics (HAL) with a buy call. The brokerage has placed the target at Rs 3,900. Besides, it has also maintained a buy call on Bharat Electronics (BEL) and raised the target price to Rs 260 from Rs 225. Jefferies notes that BEL is a steady play on overall defence spend. READ MORE

In separate news, India's manufacturing sector growth climbed to a 16-year high in March on the back of the strongest increase in output and new orders since October 2020, amid reports of buoyant demand conditions, a monthly survey said on Tuesday. The seasonally adjusted HSBC India Manufacturing Purchasing Managers' Index (PMI) surged to a 16-year high of 59.1 in March from 56.9 in February, reflecting stronger growth of new orders, output, and input stocks as well as renewed job creation. 

This is also a sentiment booster for the stocks.