Shares of major Indian capital goods manufacturers faced intense selling pressure on Friday, with names including GE Vernova T&D India, Hitachi Energy India, and Siemens Energy India dropping as much as 10.5% in the session.
The selloff was triggered by a policy shift from India’s central government, which has permitted four Chinese manufacturers to participate in government tenders for power projects.
The move marks a significant change in procurement rules for India’s energy infrastructure sector, where domestic and Western firms had previously held a protected position.
Investors reacted swiftly to the news, interpreting the inclusion of Chinese competitors as a direct threat to market share and pricing power for established players like CG Power, Hitachi Energy, and Apar Industries.
The sharp decline reflects concerns that lower-cost Chinese entrants could undercut bids in upcoming tenders, compressing margins for incumbents.
This development adds to a broader theme of competitive pressure in global energy infrastructure markets.