BHEL, L&T, ABB Stocks Plunge 14% Amid Reports of Easing China Ban on Govt Contracts

• Shares of BHEL, L&T, ABB India, and Siemens India plummeted by up to 14% today, with BHEL recording its biggest intra-day fall since June 4, 2024.
• The sharp decline was triggered by a Reuters report suggesting the Finance Ministry plans to lift a five-year-old ban on Chinese companies bidding for government contracts.
• The ban, imposed in 2020 after the Galwan border clash, required Chinese bidders to obtain political and security clearances.
• A high-level committee, chaired by former Cabinet Secretary Rajiv Gauba, has reportedly recommended easing these restrictions.
• BHEL closed down 10.34% at ₹272.30, L&T down 3.35% at ₹4028, ABB India down 4.86% at ₹5041.30, and Siemens India down 3.97% at ₹3009.90.

Why It Matters: Government's potential easing of China ban on contracts caused major Indian industrial stocks to fall.