New Delhi, Oct. 9 -- The S&P BSE Capital Goods index gained 21% in the previous six months on the back of some key developments.

Among those-the Union government's capital expenditure spending rose 43% to Rs.4.3 trillion in the first five months of 2025-26 (April-August), and the ministry of defence has outlined 15-year sectoral needs, targeting annual spending of $25-30 billion ( Rs.2.2-2.6 trillion).

Also, strong execution of record-high order books is expected to translate to decent second-quarter (July-September) earnings for some capital goods companies. Improving execution is seen offsetting the adverse impact of lower exports and deferment of new orders due to US tariff-related uncertainties.

Nomura Global Markets Research expec...