# Capex Intensifies as External Issues Ease > Private capital spending rises across sectors once global tensions drop. - Title: Capex Intensifies as External Issues Ease · mint | Shortify - Summary: Private capital spending rises across sectors once global tensions drop. Private sector capital expenditure will increase as external uncertainties decrease… - Keywords: capex, private sector, external issues, india, nifty 50, mid-caps, small-caps, renewable energy, evs, defence, precision manufacturing, bond yields - Source: mint — https://livemint.com/market/capex-is-happening-across-sectors-but-will-intensify-once-external-issues-ease-abakkus-assets-sunil-singhania-11791093171709.html - Author: Srushti Vaidya,Ram Sahgal - Published: 2026-10-05T00:30:42+00:00 - Read time: 1 min - Topics: capex, private sector, external issues, india, nifty 50, mid-caps, small-caps, renewable energy, evs, defence, precision manufacturing, bond yields ## Market Sentiment Near-term market sentiment is weighed down by West Asia war, keeping oil prices, inflation concerns and bond yields elevated. > West Asia war ## Nifty 50 Composition Nifty 50 trading slightly below 10-year average valuation with heavy weight in IT services, consumer staples, oil & gas, and banking. > Nifty 50 trading slightly below 10-year average valuation ## Nifty Growth Outlook Nifty can deliver decent returns broadly in line with India's normal GDP growth but may struggle to generate very high growth. > Nifty can deliver decent returns, broadly in line with India’s normal GDP growth ## Mid-Caps and Small-Caps Mid-caps and small-caps represent India's future with higher growth potential in precision manufacturing, renewable energy, EVs, and defence. > Mid-caps and small-caps will represent India's future ## FII Flows and Rupee FII flows took a breather after $135 billion FCNR deposits led rupee to depreciate to 94.50 and now near 96. > $135 billion FCNR deposits ## West Asia Conflict Impact West Asia conflict keeps oil prices high, contributing to global inflation and bond yields. > West Asia conflict keeps oil prices high ## Oil Price Stability Oil prices could fall significantly if West Asia conflict resolves sooner rather than later. > Oil prices could fall significantly ## Corporate Earnings Outlook India's growth and corporate earnings outlook remain healthy despite weak monsoon. > GDP growth and corporate profit growth remain reasonably strong ## Private Capex Activity Private sector capex is picking up across autos, steel, aluminium, renewable energy and battery storage. > Private sector capex is picking up across autos, steel, aluminium, renewable energy and battery storage ## Capex Intensification Private capex intensity will increase significantly once external environment becomes clearer. > Capex intensity could increase significantly ## Funding Cost Concerns Sharp rise in cost of funds is the main concern for private capex but hasn't been observed yet. > Sharp rise in cost of funds ## Valuation Concerns Mid-caps and small-caps trading at high valuations due to theme-driven buying. > Significant portion of mid- and small-cap basket in euphoric zone ## Long-Term Growth Potential Some companies can grow faster than India's GDP with valuations justified for next three to four years. > Companies can grow faster than India's GDP over the long term ## Key takeaway Private sector capital expenditure will increase as external uncertainties decrease, according to Abakkus Asset's Sunil Singhania.