Indian power sector stocks, including Cummins India, fell sharply on Friday.
Reports indicate the government may grant a two-year exemption to four Chinese electrical equipment firms, including TBEA Energy.
The potential policy allows these firms to participate in government tenders to prevent domestic project delays.
This decision would partially reverse restrictions established after the 2020 border clash.
Investors anticipate increased competition, leading to potential margin compression and market share loss for domestic manufacturers.
The development creates a significant headwind for Cummins India, a primary supplier to the domestic power and infrastructure sectors.