Capital goods stocks specializing in high-voltage transmission and distribution (T&D) equipment saw a recent decline after a strong rally in 2026. Hitachi Energy India, GE Vernova T&D India, Siemens Energy India, and CG Power and Industrial Solutions had gained 66%, 34%, 23%, and 35% year-to-date respectively before the pullback, according to livemint.com. The BSE Capital Goods Index rose 10% over the same period.
The rally occurred amid rising investor interest driven by a widening global supply-demand gap for high-voltage power equipment such as transformers, switchgear, and circuit breakers. Strong multi-year order pipelines in domestic and international markets supported the surge. However, investors began booking profits recently due to concerns over elevated valuations, leading to a pause in the rally. Domestic brokerage 360 ONE Capital Markets noted that the price correction eased valuation worries, as much of the upside had been priced in.
360 ONE Capital Markets has initiated coverage on three key T&D stocks: Hitachi Energy India, GE Vernova T&D India, and CG Power and Industrial Solutions. The brokerage highlighted a structural, multi-year growth opportunity in the T&D sector driven by increasing demand for power infrastructure upgrades. The sector’s performance contrasts with broader markets, which have been affected by escalating geopolitical tensions throughout the year.
The recent correction in capital goods stocks follows a period of strong gains, with Hitachi Energy India leading the pack at a 66% rise year-to-date. The next quarterly earnings reports from these companies will provide clearer insights into whether the valuation concerns will impact future investor sentiment, according to livemint.com.