Shares of state-owned engineering giant Bharat Heavy Electricals Limited (BHEL) witnessed a sharp sell-off, tumbling nearly 6% in a single trading session on Monday, January 12, 2026. This decline marked the third consecutive day of heavy losses, culminating in a staggering 15% drop over just three trading sessions.
Heavy Selling and Soaring Volumes
The intensity of the sell-off was underscored by a massive surge in trading activity. On January 12, approximately 2 crore equity shares of BHEL were traded on the exchanges. This figure was double the stock's one-month average trading volume of 1 crore shares, indicating heightened panic and a rush to exit the counter.
On the Bombay Stock Exchange (BSE), the BHEL share price hit an intraday low of ₹258.30, down by 5.97% from its previous close. By 10:40 AM, the stock was still trading deep in the red, quoted at ₹262.40, reflecting a loss of 4.48%.
The China Trigger: A Sector-Wide Ripple Effect
The primary catalyst for the brutal sell-off in BHEL and other capital goods stocks was a wave of anxiety sweeping through the sector. Media reports emerged last week suggesting that the Finance Ministry was considering scrapping a five-year-old restriction that prevented Chinese companies from bidding for Indian government contracts.
This potential policy shift sparked fears of intense price competition and market share loss for domestic capital goods manufacturers like BHEL, which have been major beneficiaries of government tenders under the existing rules. Investors reacted by swiftly offloading shares to mitigate perceived future risks.
Broader Capital Goods Sector Under Pressure
The selling pressure was not confined to BHEL alone. The entire capital goods sector felt the heat, with several key players seeing their stock prices decline.
- Hitachi Energy India shares dropped over 5%.
- Titagarh Rail Systems declined more than 3%.
- ABB India fell 2.2%.
- Siemens dipped 2.6%.
- Larsen & Toubro, the industry bellwether, saw its stock price fall 1.57%.
- Renewable energy players like Inox Wind and Suzlon Energy also slipped 2% and 1.95%, respectively.
The synchronized fall across the sector highlights the market's deep-seated concerns about the competitive landscape if Chinese firms are allowed back into the fray for lucrative government projects. The three-day carnage in BHEL shares serves as a stark reminder of how policy whispers can trigger significant volatility, especially in public sector undertakings (PSUs) closely tied to government procurement.
