There has been a significant increase in capital expenditure in India, with growth expected to continue in the coming months. The government’s focus on railways and road projects has helped achieve significant progress, with around 83-87 per cent of the financial year 2025 revised estimates already completed for these sectors. Indian steel prices have risen by 5 per cent from their December lows, signaling a recovery in the sector. Any potential safeguard duty on steel could provide additional support to prices, improving margins and boosting valuations for metal companies. The metal sector is expected to continued its strong performance in coming months, the brokerage firm stated. The brokerage also pointed out that the Asian steel spread remains 20 per cent below its long-term average, leaving room for potential expansion. The market is cautious on private capex. The central government’s capital expenditure rose by 51 per cent year-on-year in January 2025, reflecting its commitment to strengthening the country’s infrastructure. This financial support is expected. to further accelerate infrastructure projects at the state level, boosting overall economic growth.