BHEL, ABB India, Hitachi Energy Shares Plunge Amid China Bid Worries

• Shares of BHEL, ABB India, Hitachi Energy, and CG Power fell 3-6% on Monday, January 12.
• The decline extends losses from last week due to concerns over Chinese companies bidding for government contracts.
• IIFL's Renu Baid Pugalia stated that TBEA, a Chinese manufacturer, is approved for high voltage reactor bids from FY27.
• While current import restrictions remain, Chinese players or their India-based factories may participate in future transmission bids.
• Valuations of capital goods companies are expected to correct due to increased competition and market sentiment.

Why It Matters: Indian capital goods stocks dropped on fears of increased competition from Chinese firms in government contracts.