Home Business Upbeat on Centre's initiative, defense-related stocks trade higher

Upbeat on Centre’s initiative, defense-related stocks trade higher

Defense stocks have performed well in the last three months. (Representative)

New Delhi:

Shares of companies related to the defense sector are moving north, and the government’s efforts to indigenize more defense equipment as well as boost their exports are fueling investor sentiment.

The ‘Fourth Positive Indigenization List’ of 101 defense items was announced by Prime Minister Narendra Modi on Wednesday, which also means increased business opportunities for domestic players belonging to the multi-billion dollar defense segment.

An analysis of stocks of companies that have businesses related to the defense sector showed that most of them have posted gains since Wednesday.

Mazagon Dock, Bharat Dynamics, Cochin Shipyard, Mishra Dhatu Nigam, Bharat Electronics, Bharat Forge, Astra Microwave Products and Paras Defense and Space Technologies are among the companies that gained up to 5 per cent in two trading days on Wednesday and Thursday. is of. ,

Analysts believe that broadly the defense stocks have outperformed and are expected to deliver good returns for the investors.

From the close of trading on October 18 till the close of October 20, Mazagon Dock’s shares were up 5.39 per cent and BEML by 4.43 per cent.

Similarly, Bharat Dynamics rose 3.32 per cent, Cochin Shipyard 2.82 per cent, Mishra Dhatu Nigam Ltd 2.18 per cent and Bharat Electronics 1.93 per cent.

In the last two days, the stock of Bharat Forge gained 1.44 per cent, Astra Microwave Products 0.84 per cent and Paras Defense and Space Technologies (0.26 per cent).

Meanwhile, some stocks remained soft. Shares of Data Pattern (India) declined by 3.86 per cent and Hindustan Aeronautics by 1.18 per cent during the period under review.

On Friday morning, however, most of the stocks were trading on a mixed note, with Bharat Dynamics up 2.76 per cent and Paras Defense up 0.35 per cent.

In the morning trade on Friday, the benchmark 30-share BSE Sensex was trading at 59,469.67, up 266.77 points or 0.45 per cent.

Defense stocks have performed very well in the last three months. Deepak Jasani, head of retail research at HDFC Securities, said these lists have improved the visibility of revenue for most defense-related companies and the government has given a lot of orders to these companies to promote indigenisation.

The subject of defense may continue to perform well given the high revenue visibility over several years. However, some consolidation/correction can be expected after the recent sharp uptrend, he said.

Reliance, Tata, Adani and L&T also have a presence in the defense segment.

“In the last one year, the defense sector stocks have outperformed and will continue to deliver good returns… Companies like BEL, Hindustan Aeronautics, Bharat Dynamics, Mazagon Dock, Cochin Shipyard are likely to get more orders from the Defense Ministry. This will also improve their earnings,” said Gaurang Shah, Senior Vice President, Geojit Financial Services.

Ashwin Patil, Senior Research Analyst, LKP Securities, said the dependence on developed countries is decreasing day by day and providing easy availability and margin support for the Indian defense sector.

The Ministry of Defense (MoD) has taken several steps to achieve ‘Atmanirbhar Bharat’ in Defense and the Positive Indigenization List is a landmark initiative towards achieving that vision.

The ‘Fourth Positive Indigenization List’ of 101 items was announced by the Prime Minister on 19 October.

The Ministry of Defense (MoD) in a release said, “All items included in the list will be procured from indigenous sources as per the provisions laid down in the Defense Acquisition Procedure (DAP) 2020. This list provides a continuous impetus towards self-reliance in defence. ” on Wednesday.

The MoD had earlier promoted the ‘First, Second and Third Positive Indigenization List’ consisting of 310 items on August 21, 2020, May 31, 2021 and April 07, 2022, respectively.

(Except for the title, this story has not been edited by NDTV staff and is published from a syndicated feed.)

RELATED ARTICLES

Forex reserves rise for third straight week to $550 billion

<!-- -->For the week ended November 18, India's reserves stood at $547.25 billion. (File)Mumbai: India's foreign exchange reserves rose for the third consecutive...

Deadline for 30% cap on UPI transactions by payments firms extended

<!-- -->UPI facilitates peer-to-peer online money transfers through mobile apps. (File)Mumbai: India has decided to extend the deadline for capping share of digital...

NSE launches new Nifty Bharat Bond Index

<!-- -->The total assets under management of all India Bond ETFs has now grown to over Rs 52,000 crore.New Delhi: NSE Indices, a subsidiary...

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Most Popular

England Sense Lead Despite Three Pakistan Centurions In First Test | cricket news

England found ways to take wickets and sensed a good lead despite hundreds from three Pakistan players on the third day of the opening...

“Keep Phones Away From Kids And Let Them Play To Avoid Obesity”: Kapil Dev | cricket news

Former Indian cricketer Kapil Dev recently shared that obesity in children can be tackled by keeping the phone away from them and letting them...

Mitchell Starc Continues Love Affair With Clean Bowling Batters. Watch | cricket news

AUS vs WI, 1st Test: Glimpse of Mitchell Starc's delivery to dismiss Da Silva© TwitterAustralia continue to dominate the ongoing first Test against West...

FIFA World Cup 2022, Round Of 16 Fixtures: Check Who Plays Whom And When In Knockout Stage | football news

Photo from Japan vs Spain match in FIFA World Cup 2022.© AFPThe FIFA World Cup 2022 in Qatar now enters its knock out stage....

Recent Comments