Chinese Firms May Re-enter India Projects; BHEL, Siemens, L&T Stocks Plunge

• India's Finance Ministry may lift 5-year ban on Chinese companies bidding for government projects, especially in power sector.
• Move aims to resume business ties with China amid improving diplomatic relations and easing border tensions.
• News caused significant pressure on Indian capital goods stocks: BHEL hit 10% lower circuit, Siemens fell over 4%, L&T dropped 3%.
• Hitachi Energy and ABB India also saw declines of 4-4.5 percent in trading.
• The 2020 restrictions, imposed after border clashes, required Chinese bidders to register with an Indian government committee and obtain clearances.

Why It Matters: Potential lifting of China ban pressures Indian capital goods stocks, signaling a shift in India-China business ties.