Overview
- BHEL slumped roughly 9–10% on Thursday on heavy volume, with the broader capital-goods pack also lower and names such as Hitachi Energy India, ABB India, Siemens, Inox Wind and L&T declining.
- The sell-off followed a Reuters report citing unnamed sources that the finance ministry is weighing scrapping five-year-old restrictions on Chinese firms bidding for government contracts, with no official confirmation reported.
- Brokerages flagged BHEL as the most exposed, particularly in thermal power where Chinese equipment makers have competed aggressively, while L&T was viewed as comparatively insulated.
- Several analysts suggested any relaxation would be selective rather than sweeping, with IIFL pointing to potential case-by-case permissions such as TBEA’s participation in specific Power Grid tenders, and Antique calling the sharp BHEL drop unjustified.
- Separately, BHEL told exchanges it has begun supplying underslung traction converters for the Vande Bharat Sleeper Train project through its consortium with TRSL.