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New Delhi: Shares of Bharat Heavy Electricals Ltd (BHEL) bounced back strongly on Friday, January 9, rising nearly 5 percent to touch Rs 285.50 on the NSE. This recovery came just a day after the stock had fallen sharply by around 9 percent amid a broader market sell-off.
On Thursday, January 8, Indian stock markets saw heavy selling pressure as investors reacted to fears of a possible 500 percent tariff by the US. All major sectoral indices ended in the red, dragging down several stocks, especially in the capital goods space.
Why BHEL Shares Fell a Day Earlier?
BHEL was among the biggest losers on Thursday. The stock declined sharply after reports suggested that the finance ministry may remove a five-year-old restriction on Chinese companies bidding for government contracts. This raised fears of higher competition for Indian capital goods companies like BHEL.
As a result, several stocks in the sector fell sharply. Hitachi Energy India, ABB India, Siemens, Larsen & Toubro, Suzlon Energy, Inox Wind and Titagarh Rail Systems also ended lower. The BSE Capital Goods index dropped over 2 percent, according to PTI.
Big Order Win Boosts Confidence
The sharp recovery in BHEL shares on Friday was driven by fresh positive news. The company announced that it has secured a major order worth around Rs 5,400 crore, excluding GST, from Bharat Coal Gasification and Chemicals Limited (BCGCL).
BCGCL is a joint venture between BHEL and Coal India Limited. The project is for setting up coal gasification and raw syngas cleaning facilities for a coal-to-ammonium nitrate plant in Jharsuguda, Odisha.
The order includes engineering, procurement, construction, commissioning and performance guarantee. It covers key facilities such as gasifiers, steam generation units, air separation units, coal and ash handling systems, and cooling towers.
Vande Bharat Train Supplies Add Support
In another positive update, BHEL said it has started supplying semi-high-speed traction converters for Vande Bharat sleeper trains. These converters are being sent to Kolkata for final assembly of the trains.
The first set was flagged off from BHEL’s Bengaluru plant in the presence of senior officials. This highlights BHEL’s growing role in railway modernisation and indigenous manufacturing.
Overall, the new order win and progress in railway supplies helped restore investor confidence in the stock.
Disclaimer: This article is for informational purposes only and should not be considered investment advice. Readers are advised to consult certified financial advisors before making any investment decisions.
