Competition may weigh on power equipment firms

Their stocks fell for a second day amid reports about possible removal of curbs on China companies bidding for govt contracts

- NIKITA VASHISHT

Panic selling in shares of power equipment-related companies entered a second day on Friday (January 9) as concerns continued to mount on the growth outlook for the pack.

Investors have been selling shares of Hitachi Energy, CG Power, Siemens Energy, and GE Vernova T&D amid reports that the government might allow Chinese companies to bid for government contracts, particularly in the infrastructure, power, and manufacturing spaces.

To be sure, neither the government nor any company has confirmed the development. Still, Hitachi Energy India share price ended the day shedding 3.1 per cent, adding on to its 5.8 per cent slide on Thursday. Similarly, GE Vernova T&D shares were down 3.5 per cent, with a cumulative fall of 7.9 per cent in the two days. CG Power and Industrial Solutions shares slipped 2.8 per cent (down 6.4 per cent in the two days) while Siemens Energy India declined 4.8 per cent (down 7.6 per cent in the two days). L&T was down marginally on Friday, with its two-day losses at 3 per cent.