Bharat Heavy Electricals Ltd (BHEL) share price declined nearly 6% on Monday, extending losses for the third consecutive session. The PSU stock dropped as much as 5.97% to 258.30 apiece on the BSE.
BHEL share price has slumped 15% in three trading sessions. Trading volumes in BHEL shares spurred and were double than the monthly average. Around 2 crore equity shares of BHEL changed hands on stock exchanges on January 12 as compared to its one month average trading volume of 1 crore shares.
The fall in BHEL stock price came amid a broader sell-off on capital goods stocks amid media reports last week that the finance ministry was planning to scrap a five-year-old restriction on Chinese firms bidding for government contracts.
The report triggered fears of increased competition for capital goods companies and led to heavy selling of the shares in the sector.
Among other capital goods stocks, Hitachi Energy India share price dropped over 5%, Titagarh Rail Systems shares declined over 3%, ABB India stock price fell 2.2%, Inox Wind shares declined 2%, Siemens shares dipped 2.6%, Suzlon Energy shares fell 1.95%, and Larsen & Toubro stock price fell 1.57% on the BSE.
Technical View
In the last three sessions, BHEL stock price has corrected with high volumes and has breached its 50 DEMA support, noted Ruchit Jain, Head – Equity Technical Research, Wealth Management, Motilal Oswal Financial Services Ltd.
According to Jain, the next support for BHEL share price is placed around its 200 DEMA at 253 level 285 – 290 will now be seen as resistance on pullback moves.
BHEL Share Price History
BHEL share price has fallen 8% in one month, but has gained over 9.5% in three months. Over the past one year, the defense PSU stock has rallied over 28% and has jumped 33% in two years. BHEL stock price has delivered multibagger returns of 566% in the past five years.
At 10:40 AM, BHEL share price was trading 4.48% lower at 262.40 a piece on the BSE.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
