New Delhi [India], January 3 (ANI): India’s capital expenditure (capex) cycle is showing early but credible signs of revival, with market strategists projecting that several investment-linked sectors will benefit significantly over the next two to three years.
According to the India Equity Strategy 2026 report by Antique Stock Broking, improving macroeconomic conditions, supportive policies, and rising private and household investment are setting the stage for a broad-based capex recovery.
Defence remains a key structural beneficiary, driven by higher budget allocations, a robust order pipeline, and the government’s focus on indigenisation under the Atmanirbhar Bharat programme, providing multi-year revenue visibility for defence manufacturers. Export opportunities are also expanding, offering additional growth potential.
Capital goods companies are expected to experience outsized earnings growth as fresh orders coincide with high operating leverage. With capacity utilisation above long-term averages and renewed private sector investment, even modest revenue growth could translate into strong profit expansion. Improved valuations in parts of the sector enhance the risk-reward profile.
Industrial and electronics manufacturing services (EMS) are set to gain from both domestic capex and global supply-chain diversification. As multinational companies adopt “China+1” strategies, India is emerging as a preferred manufacturing base, boosting demand for industrial equipment, electronics, and automation-linked services.
While public capex remains supportive, the report highlighted the gradual return of private investment as a key driver. This trend benefits infrastructure developers, construction companies, and engineering firms, particularly those focused on roads, railways, power, and urban infrastructure.
Additionally, lower interest rates, improved affordability, and rising household investment are reviving housing demand, which supports real estate developers and building material companies such as cement manufacturers, typically lagging early in the cycle but poised for growth as projects move into execution. (ANI)
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