Why is Siemens stock down 8% today? Details here

Siemens Ltd. shares tumbled close to 8% after the company indicated that overall private capital expenditure (capex) has not seen significant growth. While sectors like semiconductors, batteries, and electric vehicles (EVs) are performing well, traditional technologies continue to experience slower investments.

As of 1:31 PM the shares were trading 7.63% lower at ₹7,049.95 on NSE.

1. Private Capex Stagnation: Siemens highlighted that private capex has not picked up meaningfully across most sectors, with growth limited to areas like semiconductors, EVs, and batteries.
2. HVDC Technology Strategy: The company confirmed its decision not to bid for projects using Line Commutated Converter (LCC) technology in India or globally. Instead, Siemens is focusing on Voltage Source Converter (VSC) technology, though the current project numbers in VSC remain minimal.
3. Industry Challenges: Digital industries face headwinds due to supply chain issues, adding to the concerns over limited demand in traditional technology sectors.

This cautious outlook on private capex and challenges in digital industries have impacted investor sentiment, contributing to the decline in Siemens’ stock price. The company’s selective approach in technology bidding reflects a strategic pivot but also highlights the prevailing challenges in the broader industrial landscape.