The BHEL share price came under heavy pressure on stock market today, extending a losing streak for the third straight session. What started as cautious selling quickly turned into a broad unwind, as policy-related concerns sparked nervousness across capital goods stocks.
Bharat Heavy Electricals Ltd (BHEL), a key defence PSU, found itself at the center of this sell-off.
Market Performance: BHEL Share Price Extends Losses
The BHEL share price declined nearly 6% during Monday’s session on the BSE.
- The stock fell as much as 5.97% to ₹258.30
- By 10:40 AM, BHEL was trading 4.48% lower at ₹262.40
This marked the third consecutive session of fall, with the stock now down 15% over three trading sessions. The pace of the fall signaled strong investor discomfort rather than routine profit booking.
Trading Volumes Spike Amid Heavy Selling
Along with the price fall, activity in the counter surged sharply, showing clear signs of heightened participation.
- Around 2 crore equity shares of BHEL were traded on January 12
- This was double the one-month average volume of 1 crore shares
Such a sharp rise in volumes, combined with a falling price, reflected aggressive exits as sentiment around the sector weakened.
Main News: China Policy Reports Trigger Sector-Wide Sell-Off
The decline in the BHEL share price came amid reports that weighed heavily on capital goods stocks.
Media reports last week indicated that the finance ministry may scrap a five-year-old restriction that prevents Chinese firms from bidding for government contracts.
This development triggered concerns around:
- Increased competition for domestic capital goods companies
- Potential pressure across project-heavy PSUs
As these worries spread, capital goods stocks saw broad-based selling across the board.
Capital Goods Stocks Feel the Heat
The weakness was not limited to BHEL alone. Several stocks in the capital goods and engineering space moved lower on the BSE.
- Hitachi Energy India fell over 5%
- Titagarh Rail Systems slipped more than 3%
- ABB India declined 2.2%
- Inox Wind dropped 2%
- Siemens fell 2.6%
- Suzlon Energy was down 1.95%
- Larsen & Toubro declined 1.57%
The collective move highlighted a sector-wide reaction rather than company-specific trouble.
BHEL Share Price History: Short-Term Pain, Long-Term Gains
While the recent fall looks sharp, the longer-term picture of the BHEL share price tells a different story.
- Down 8% in one month
- Up over 9.5% in three months
- Gained more than 28% over one year
- Jumped 33% in two years
- Delivered 566% returns over the last five years
The contrast between recent weakness and long-term performance shows how quickly sentiment can shift in response to policy-related developments in the stock market today.
Company Details: Why BHEL Matters to the Market?
BHEL remains a critical name in India’s industrial and defence ecosystem. Its stock often reacts sharply to policy signals linked to infrastructure, capital expenditure, and government-led projects.
That sensitivity was evident again, as broader headlines drove sharp short-term reactions in the BHEL share price, despite its strong long-term run.
Summary: What Drove the Fall in BHEL Share Price?
To sum it up:
- BHEL share price fell nearly 6% in one session
- The stock is down 15% in three trading sessions
- Trading volumes doubled, showing intense selling pressure
- Concerns stemmed from reports on possible changes to Chinese bidding restrictions
- The sell-off spread across capital goods stocks on the stock market today
For now, BHEL’s move reflects sentiment-driven pressure rather than stock-specific numbers. As the broader narrative unfolds, the stock remains closely tied to how policy cues shape confidence in the capital goods space.
Source: Livemint
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