BHEL Shares Plunge 10% Amid Reports of Easing Restrictions on Chinese Firms for Govt Contracts

• BHEL shares plummeted over 10% on January 8, closing at ₹272.30 on BSE, following reports of India easing restrictions on Chinese companies for government contracts.
• The Finance Ministry reportedly plans to lift five-year-old restrictions, aiming to restart commercial relations with China, which were imposed after a 2020 skirmish.
• The restrictions previously required Chinese firms to register with an Indian government committee and obtain political/security clearance for government bids.
• BHEL, a key player in India's energy security manufacturing equipment for thermal power plants, faces increased competition if Chinese firms re-enter the market.
• Other companies like Siemens, Hitachi Energy, ABB India, and L&T also saw significant share declines, indicating broader market concern over potential competition.

Why It Matters: BHEL and other Indian firms' shares fell sharply on news of India easing restrictions on Chinese companies.