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BHEL Surges on Major Coal Gasification Order
9 Jan
Summary
- BHEL shares surged over 4% following a new order.
- The order is for coal gasification facilities in Odisha.
- Previous day's sharp fall was due to a report on Chinese firms.
Shares of Bharat Heavy Electricals Ltd (BHEL) experienced a notable rebound on Friday, climbing more than 4% in early trading. This upward movement occurred against a backdrop of a weak broader stock market. The stock's ascent was primarily driven by a significant new order announcement from Bharat Coal Gasification and Chemicals Limited (BCGCL) for setting up coal gasification and raw syngas cleaning facilities.
This strategically important order is for a coal-to-ammonium nitrate plant being developed in Jharsuguda, Odisha. BCGCL is a joint venture involving BHEL itself and Coal India Ltd, making the order a positive development tied to a large industrial project. The stock's strong performance on Friday also marks a recovery from a sharp 10% drop witnessed on January 8th, when it hit the lower circuit.
The earlier decline was reportedly influenced by a Reuters report suggesting that India might lift restrictions on Chinese companies bidding for government contracts. This news had caused significant selling pressure on stocks like BHEL, which are heavily involved in government projects. BHEL is a key player in supplying equipment for India's power sector, including turbines and boilers for thermal power plants.
