BHEL may make rolling stock for bullet train; stock surges 4%

The stock rallied 10% to Rs 146 ob BSE in intra-day trade on hopes that the company will make rolling stock for bullet train.

Bharat Heavy Electricals Limited (BHEL) has moved higher by 10% to Rs 146 in intraday trade on the back of heavy volumes after Prime Minister Narendra Modi and his Japanese counterpart Shinzo Abe on Thursday laid foundation stone for India's first bullet train between Ahmedabad and Mumbai.

The stock settled the trade 3.6% higher at Rs 137 on the BSE. 

On June 29, 2017 the state-owned BHEL had entered into a technology collaboration agreement with Kawasaki Heavy Industries, (KHI), Japan for the manufacture of stainless steel coaches for metros.

KHI is a manufacturer of heavy equipment and