CG Power, Hitachi, Siemens Energy, GE Vernova shares climb up to 4%; here's why
CG Power shares gained 2.54 per cent to hit a high of Rs 915.80. Hitachi Energy India Ltd advanced 4.12 per cent to Rs 31,019.05. Siemens Energy India Ltd added 2.72 per cent to Rs 3,375.95.
- Jul 6, 2026,
- Updated Jul 6, 2026 10:07 AM IST
Shares of power equipment makers CG Power and Industrial Solutions Ltd, Hitachi Energy India Ltd, Siemens Energy India Ltd and GE Vernova T&D India Ltd climbed up to 4 per cent after foreign brokerage Nomura said the 7-8 per cent selloff in the four stocks was an 'overreaction' to the government's decision to allow four China-origin manufacturers to bid for power tenders
CG Power shares gained 2.54 per cent to hit a high of Rs 915.80. This stock was also in news after arm CG Semi's JV announced commencement of commercial production at its G1 Outsourced Semiconductor Assembly and Test facility in Sanand. The JV partners are investing Rs 7,600 crore to develop two OSAT facilities – G1 and G2. While G1 has now commenced commercial production, the second facility, G2, is under development and is seen significantly scaling CG Semi’s production capacity once operational.
Hitachi Energy India Ltd advanced 4.12 per cent to Rs 31,019.05. Siemens Energy India Ltd added 2.72 per cent to Rs 3,375.95. GE Vernova T&D India Ltd rose 3.46 per cent to Rs 4,546.25.
Nomura said the government order on allowing four Chinese firms to bid for power projects explicitly stated that it was not a precedent. Market players on Friday probably read it as a competitive threat and sold off listed power-equipment stocks such as GE Vernova T&D India, CG Power, Hitachi Energy India and Siemens Energy India, it said. Nomura has retained its 'Buy' rating on CG Power (target price: Rs 1,100) and GE Vernova T&D India (Rs 5,675). It does not cover Siemens Energy India and Hitachi Energy India.
Nomura said its analysis indicated that over FY09-20, only 9 per ecnt of PGCIL’s transmission-related tenders for HVDC, substations, transformers, reactors, insulators, SCADA, FACTS and circuit breakers were awarded to the four exempted Chinese manufacturers. They are TBEA, Northeast Electric, Nanjing and Taikai. This was despite an unrestricted bidding field and, in several categories, a headline cost advantage.
The structural frictions beyond the security clearance itself meaningfully cap achievable share even when the regulatory door is open, Nomura said. They included such as technical qualification thresholds, prior-supply-experience (PQR) criteria, after-sales servicing expectations, testing and type-approval cycles, and buyer preference for vendors with an established execution track record on Indian grid specifications.
"We believe re-opening the door for four specific entities is, therefore, not equivalent to re-opening the door to the 9 per cent share the exempted China-based vendors might theoretically command; it is a re-opening for four names that would still need to clear the same technical/qualification bar tender-by-tender," Nomura said.
The foreign brokerage said the order's own text states the exemption is valid for two years and explicitly may not be treated as a precedent - language the government does not attach lightly, and which signals this was negotiated as a targeted, time-boxed relief valve rather than a policy reversal, Nomura said.
Shares of power equipment makers CG Power and Industrial Solutions Ltd, Hitachi Energy India Ltd, Siemens Energy India Ltd and GE Vernova T&D India Ltd climbed up to 4 per cent after foreign brokerage Nomura said the 7-8 per cent selloff in the four stocks was an 'overreaction' to the government's decision to allow four China-origin manufacturers to bid for power tenders
CG Power shares gained 2.54 per cent to hit a high of Rs 915.80. This stock was also in news after arm CG Semi's JV announced commencement of commercial production at its G1 Outsourced Semiconductor Assembly and Test facility in Sanand. The JV partners are investing Rs 7,600 crore to develop two OSAT facilities – G1 and G2. While G1 has now commenced commercial production, the second facility, G2, is under development and is seen significantly scaling CG Semi’s production capacity once operational.
Hitachi Energy India Ltd advanced 4.12 per cent to Rs 31,019.05. Siemens Energy India Ltd added 2.72 per cent to Rs 3,375.95. GE Vernova T&D India Ltd rose 3.46 per cent to Rs 4,546.25.
Nomura said the government order on allowing four Chinese firms to bid for power projects explicitly stated that it was not a precedent. Market players on Friday probably read it as a competitive threat and sold off listed power-equipment stocks such as GE Vernova T&D India, CG Power, Hitachi Energy India and Siemens Energy India, it said. Nomura has retained its 'Buy' rating on CG Power (target price: Rs 1,100) and GE Vernova T&D India (Rs 5,675). It does not cover Siemens Energy India and Hitachi Energy India.
Nomura said its analysis indicated that over FY09-20, only 9 per ecnt of PGCIL’s transmission-related tenders for HVDC, substations, transformers, reactors, insulators, SCADA, FACTS and circuit breakers were awarded to the four exempted Chinese manufacturers. They are TBEA, Northeast Electric, Nanjing and Taikai. This was despite an unrestricted bidding field and, in several categories, a headline cost advantage.
The structural frictions beyond the security clearance itself meaningfully cap achievable share even when the regulatory door is open, Nomura said. They included such as technical qualification thresholds, prior-supply-experience (PQR) criteria, after-sales servicing expectations, testing and type-approval cycles, and buyer preference for vendors with an established execution track record on Indian grid specifications.
"We believe re-opening the door for four specific entities is, therefore, not equivalent to re-opening the door to the 9 per cent share the exempted China-based vendors might theoretically command; it is a re-opening for four names that would still need to clear the same technical/qualification bar tender-by-tender," Nomura said.
The foreign brokerage said the order's own text states the exemption is valid for two years and explicitly may not be treated as a precedent - language the government does not attach lightly, and which signals this was negotiated as a targeted, time-boxed relief valve rather than a policy reversal, Nomura said.