BHEL rallies 5% on huge volumes; why PSU stock in focus on Friday?

BHEL Share Price: The average trading volumes at the BHEL counter more-than-doubled with a combined 36.99 million equity shares changing hands on the NSE and BSE till 10:31 AM.

Bharat Heavy Electricals Limited (BHEL) share price today

 

Shares of Bharat Heavy Electricals Limited (BHEL) rallied 5 per cent to ₹285.50 on the BSE in Friday’s intra-day trade, partially erasing its previous day’s losses, on the back of heavy volumes in an otherwise range-bound market. 

 

On Thursday’s the stock price of the public sector undertaking (PSU) company declined 10 per cent after a Reuters report suggested that the Government of India may ease restrictions on Chinese firms bidding for government contracts, imposed in 2020.

 

At 10:31 AM; BHEL was quoting 4 per cent higher at ₹283.20, as compared to 0.02 per cent decline in the BSE Sensex. The average trading volumes at the counter more-than-doubled with a combined 36.99 million equity shares changing hands on the NSE and BSE. The stock had hit a 52-week high of ₹305.85 on Wednesday, January 7, 2026. 

 

 

Why has BHEL stock price rebounded on Friday?

 

BHEL said it received a Letter of Acceptance (LoA) from Bharat Coal Gasification and Chemicals Limited (BCGCL), a joint venture of Coal India Limited (51 per cent) and BHEL (49 per cent). The order pertains to the Coal Gasification & Raw Syngas Cleaning Plant (LSTK-1 package) for BCGCL’s Coal-to-2000 TPD Ammonium Nitrate project at Lakhanpur, Jharsuguda district, Odisha.

 

The scope includes design, engineering, equipment supply, civil works, erection, commissioning, and operation & maintenance (O&M) services. The project is valued at ~₹5,400 crore (excluding GST), with commissioning and performance guarantee testing scheduled within 42 months from the LoA, followed by O&M services for 60 months. 

 

Meanwhile, in a separate exchange filing, BHEL informed that the company has achieved a major milestone in its 'Make in India' initiatives for the rail transportation sector by commencing supply of under slungtraction converters for the prestigious Vande Bharat Sleeper Train project being executed by BHEL-led consortium with Titagarh Rail Systems (TRSL). 

 

The large-value order significantly strengthens BHEL’s industrial and process plant order book and enhances its long-term revenue visibility, given the extended execution and O&M tenure, ICICI Securities said in a note. 

 

Meanwhile, the reported easing of curbs has created a negative near-term sentiment for the capital goods companies, driven by fears of higher competitive intensity and pricing pressure in PSU-led tenders, particularly in power equipment, transmission, and railway projects. Companies with greater dependence on government orders face higher sensitivity to potential margin compression and lower bid competitiveness. 

 

At the same time, the policy consideration appears driven by India’s growing thermal power capacity requirements, with restrictions on imports contributing to equipment availability constraints and project delays. India is targeting a thermal capacity of ~307 GW over the next decade, and timely addition of large supercritical units requires assured access to boilers, turbines, generators, and balance-of-plant equipment, the brokerage firm said.  ===============================  Disclaimer: View and outlook shared on the stock belong to the respective brokerages and are not endorsed by Business Standard. Readers discretion is advised.