BHEL gains over 16% on likely surge in demand

Mumbai: Shares of state-owned power equipment producer BHELNSE 1.57 % rose 16.6 per cent on Thursday, as expectation grew that the government may restrict import of cheaper Chinese alternatives following an over month-long standoff between Indian and Chinese troops in the Ladakh region that claimed the lives of at least 20 Indian soldiers earlier this week.

The telecom ministry’s order to state-owned operators Bharat Sanchar Nigam Limited (BSNL) and Mahanagar Telephone Nigam Limited (MTNL) to ban all Chinese equipment further boosted sentiment.

BHEL draws 75 per cent of its revenue from the power segment and the company will be the biggest beneficiary if there is a ban on Chinese equipment, analysts said.