Capital Goods Stocks Plunge As Reports Of China Contract Curbs Rollback Spark Selloff
Shares of capital goods companies slumped sharply, led by over 10 per cent fall in BHEL, after media reports suggested the government may scrap restrictions on Chinese firms bidding for public contracts. Stocks of ABB, Siemens, Hitachi Energy, and L&T also declined, dragging the BSE Capital Goods index lower. Broader markets remained weak, with Sensex and Nifty ending over 1 per cent down.
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New Delhi: Shares of capital goods firms nursed deep losses on Thursday, with BHEL tumbling over 10 per cent, amid media reports that the finance ministry is planning to scrap a five-year-old restriction on Chinese firms bidding for government contracts, which triggered fear of increased competition.
The stock of BHEL tumbled 10.34 per cent, Hitachi Energy India dropped 5.88 per cent, ABB India tanked 4.86 per cent, Inox Wind declined 4.11 per cent, Siemens Ltd dipped 3.97 per cent, Suzlon Energy edged lower by 3.74 per cent, Titagarh Rail Systems (3.54 per cent) and Larsen & Toubro (3.35 per cent) on the BSE.
The BSE Capital Goods index dropped 2.31 per cent to 66,267.65. "Capital Goods stocks fell up to 12 per cent after media reports suggested that Indian Finance Ministry is planning to scrap a five-year-old restriction on Chinese firms bidding for government contracts which triggered fear of increased competition," Siddhartha Khemka - Head of Research, Wealth Management, Motilal Oswal Financial Services Ltd, said.
In the equity market, the 30-share BSE Sensex tanked 780.18 points or 0.92 per cent to settle at 84,180.96. The 50-share NSE Nifty tumbled 263.90 points or 1.01 per cent to 25,876.85.
Disclaimer: This story is from the syndicated feed. Nothing has changed except the headline.
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