Market Volatility Hits Capital Goods and Tech Sectors

The Indian capital goods sector witnessed a sharp correction on July 3, 2026, as investors reacted to government policy shifts. The decision to permit Chinese-linked power equipment manufacturers to participate in critical government tenders triggered a widespread sell-off. Companies including CG Power and Industrial Solutions fell by 7.5% to ₹887, while Hitachi Energy India and GE Vernova T&D India saw declines of 9% and 10.4%, respectively. Other industry players like Thermax and Apar Industries also faced significant downward pressure as market participants recalibrated expectations for domestic competition.

KPIT Technologies reported a sharp 25% decline in its share price over five days, falling to ₹558.65. This downturn, representing a 71% drop from its all-time peak, follows a weak Q1 FY27 business outlook citing reduced discretionary spending by European automotive OEMs. The company anticipates a marginal year-on-year decline in USD revenue. Simultaneously, the banking sector remains in focus; Yes Bank reported a 18.4% year-on-year growth in loans and advances to ₹2.85 lakh crore, though its CASA ratio dropped to 32.7% as of June 30, 2026, leading to a share price of ₹24.39.

In contrast to sector-wide volatility, Waterways Leisure Tourism demonstrated resilience following its initial public offering. Despite a weak market debut on July 1, 2026, where the stock listed at a discount, it hit the 10% upper circuit for two consecutive sessions on July 2 and 3, reaching a record high of ₹734.05 on the BSE. While large capital goods and tech stocks face headwinds due to regulatory and global economic factors, retail-heavy IPOs continue to show localized demand, reflecting the complex and polarized nature of the current market environment.