BHEL share price jumps 5% on January 9, a day after witnessing heavy sell-off; what you need to know

Selling was witnessed across the board as all the major sectoral indices ended in the red.

Among the losers, one of the notable names was Bharat Heavy Electricals Ltd (BHEL). The central public sector undertaking (PSU), which is India's largest engineering and manufacturing enterprise, saw its shares tumble around 9% on the NSE on Thursday, January 8.

The reason behind the sharp fall in the stock price was news 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.

Established in 1964, BHEL specialises in the energy, infrastructure, and industrial sectors, providing products, systems, and services for power generation (thermal, hydro, nuclear, solar), transmission, transportation, defence, oil & gas.

Besides, it also functions in emerging areas such as EV charging, playing a crucial role in building a self-reliant India with a strong domestic presence and global reach.

Other capital goods also tanked in the trade.

The stock of BHEL tumbled 10.34%, Hitachi Energy India dropped 5.88%, ABB India tanked 4.86%, Inox Wind declined 4.11%, Siemens Ltd dipped 3.97%, Suzlon Energy edged lower by 3.74%, Titagarh Rail Systems (3.54%) and Larsen & Toubro (3.35%) on the BSE.

The BSE Capital Goods index dropped 2.31% to 66,267.65, PTI reported.

New order win

Shares on Friday, January 9, jumped as much as 5% to hit a high of ₹285.50 apiece on the NSE, as the state-owned company on Thursday said it has secured an order from Bharat Coal Gasification and Chemicals Limited for coal gasification and raw syngas cleaning facilities for the coal-to-ammonium nitrate project at Jharsuguda, Odisha.

Bharat Coal Gasification and Chemicals Limited (BCGCL) is a joint venture company of Bharat Heavy Electricals Limited (BHEL) and Coal India Ltd (CIL).

The order covers engineering, procurement, construction, commissioning and performance guarantee of the coal gasification and raw syngas cleaning facilities, which form the core process units of the integrated chemical complex.

The size of the order is around ₹5,400 crore, excluding GST.

BHEL supplies Vande Bharat train converters

In another filing, BHEL on Thursday said it has commenced supply of semi-high-speed underslung traction converters for Vande Bharat sleeper trains.

The traction converters are being dispatched to Kolkata for final assembly of the trains.

To this effect, a flag-off ceremony was held at BHEL's Bengaluru plant, a statement said. Bani Varma, Director (IS&P), BHEL, in the presence of other senior officials, flagged off the first set of traction converters.

BHEL delivers indigenous solutions in power, transmission, transportation, defence and industry.