Bharat Heavy Electricals Ltd.'s share price fell nearly 14% on Thursday, hitting days's low of Rs 261.50 apiece. This is the single biggest intraday crash recorded by the stock since June 4, 2024.
BHEL has underperformed the benchmark Nifty Midcap 50 in the near term, with the stock declining 4.99% over the past week and 4.99 percent year‑to‑date, compared with the Nifty Midcao 50’s decline of 0.73 per cent in a week and year-to-date both respectively.Over a longer horizon, however, the company has delivered strong returns, rising 25.08 per cent over one year and 238.72 per cent over three years, compared to this the benchmark’s three‑year return stood at 96.70 per cent. Its five‑year return stands at 603.68 per cent, well above the Nifty Midcap 50’s 169.43 percent gain during the same period.
BHEL carries a total market capitalisation of nearly Rs 96,418.33 crore, with a free‑float market cap of nearly Rs 35,484.26 crore, while its one‑year price range spans from a low of Rs 258 to a high of Rs 318
The stock likely came under pressure after a report by Reuters citing sources said that India's Finance Ministry is planning to scrap a five-year-old restriction on Chinese firms bidding for Government Contracts. The report further notes that restrictions on importing power‑sector equipment from China have slowed India’s efforts to expand its thermal power capacity to nearly 307 GW over the coming decade. These restrictions were first put in place post the deadly Galwan Valley clash between Indian and Chinese troops.This comes after the recent optics of camaraderie at the SCO Summit in Tianjin, China, where Prime Minister Narendra Modi and President Xi Jinping were seen corresponding for the first time since both countries distanced from each other.
Notably, India and China's trade deficit widened from $48.45 billion in FY 2014-15 to $99.21 billion in FY 2024-25, marking a 104.76 per cent increase, while total bilateral trade rose from $72.37 billion to $127.71 billion during the same period, a 76.47 per cent growth.
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)
Stay informed with ET Now’s in-depth coverage of Business News, Stock Market updates, IPO announcements, Company News, and Personal Finance Updates. Track live Share Market data, Mutual Funds, and the latest news events in real time.Shares of Bharat Heavy Electricals Limited (BHEL) crashed by nearly 14% during intraday trading on Thursday, January 8, 2026, marking one of its steepest single-day declines in recent years. While the stock recovered slightly to close down approximately 9% at ₹276.90, the sell-off wiped out significant investor wealth.
The Key Trigger: A Shift in India-China Policy
The primary catalyst for the crash was a report (first cited by Reuters) suggesting that the Indian Government is considering scrapping the five-year-old restrictions on Chinese companies bidding for government contracts.
Increased Competition: Since 2020, Chinese firms were largely barred from Indian power and infrastructure tenders due to border tensions. Lifting these curbs would force BHEL to compete directly with low-cost Chinese giants like Shanghai Electric and Dongfang Electric.
Order Book Risk: BHEL currently holds a massive order book of approximately ₹2.19 trillion, with roughly 80% of it concentrated in the power sector. Investors fear that future order inflows will shrink or margins will be squeezed if Chinese bidders re-enter the market.
Sector-wide Impact: The news didn't just hit BHEL; other capital goods and power stocks like L&T, ABB, and Siemens also saw sharp declines of 4% to 6%, as they face similar competitive risks.
Other Contributing Factors
While the China policy report was the "black swan" event, other factors intensified the selling pressure:
Massive Block Deal: A significant block deal involving approximately 2.4 million shares was executed on the NSE at a price of ₹265.20, signaling that large institutional investors were offloading stakes.
General Market Weakness: The broader market was already under pressure, with the Nifty 50 slipping below 25,900 and the Sensex falling nearly 800 points. High volatility (India VIX up 6.5%) further accelerated the exit from high-beta PSU stocks like BHEL.
Upcoming Q3 Results: BHEL has scheduled its board meeting for January 19, 2026, to announce Q3 FY26 results. The stock had been trading near its 52-week high, and many traders used the policy news as a reason to book profits ahead of the earnings report.
Technical Outlook
Despite the crash, BHEL's long-term trend remains technically intact for some analysts, as the stock is still trading above its 200-day Moving Average. However, it has broken below its short-term 5-day and 20-day averages, indicating a period of consolidation or further correction may follow.
| Metric | Level/Status |
| Closing Price (Jan 8) | ₹276.90 (-8.78%) |
| Intraday Low | ~₹261.40 (-14%) |
| Immediate Support | ₹255 - ₹260 |
| RSI (14-day) | 42.24 (Neutral to Weak) |
Would you like me to track the government's official response to the China bidding report tomorrow to see if the sell-off continues?
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