Capital goods

The increase in infrastructure spending, emphasis on power generation capacity addition and efforts to revive the economy are positive for companies like BHEL, ABB, Crompton Greaves and L&T.

Expectations of higher spending on rural electrification and other schemes such as RGGVY, which is in line with the objective of strengthening India's transmission network, distributing power to deficit areas and to reduce T&D losses, should lead to higher opportunities for Areva T&D, ABB, Kalpatru Power, Jyoti Structures, KEC

International, Emco and ICSA. If the 30 per cent export subsidy benefit on shipbuilding activities is extended, it will be good news for ABG Shipyard, Bharati Shipyard and L&T. Any visible increase in defence spending will rub positively on BEML and BEL.