Capital Goods Stocks Decline Amid China Bidding Concerns

Shares of key Indian capital goods companies, including

, , , and , dropped 1.3% to 3.8% on January 12, 2026. BHEL traded at ₹264 after a 3.8% fall, ABB India at ₹5,000 (down 1.8%), Hitachi Energy at ₹17,363 (down 2.9%), and CG Power at ₹587 (down 1.3%). This extends losses from the prior week, driven by unconfirmed reports of Chinese firms gaining entry to government power transmission bids starting FY2027. ​ No official government notification confirms the policy shift, but industry sources indicate Chinese manufacturer TBEA may bid for high-voltage reactors amid domestic capacity constraints. IIFL's Renu Baid Pugalia noted restrictions remain intact for now, with no immediate import risks, though local Chinese factories could join future tenders where pricing has risen sharply. ​ Analysts expect valuation corrections due to sentiment overhang from added competition, but foresee limited earnings impact given tight supply. High-voltage players like Hitachi Energy, GE Vernova T&D, CG Power, and Transformers & Rectifiers face spotlight. Disclaimer: This post is for informational purposes only and not a recommendation to buy or sell any securities. I, or my family, associates, or relatives, may have a financial interest in the securities mentioned.