Defence stocks like Mazagon Dock Shipbuilders, Bharat Dynamics, Data Patterns, Avantel, etc. clocked smart gains with over 5% intra-day rally after the Ministry of Defence granted five major capital acquisition proposals totalling Rs 21,772 crore.
Cochin Shipyard, HAL and Garden Reach Shipbuilders have seen as much as 6.5% gains in the stock price post the announcement.
Shares of Avantel jumped 5.16% intra-day at Rs 175.82 while the stock of Bharat Dynamics rose as much as 6% to Rs 1,222.05.
The stock of Bharat Electronics rose 2.8% to an intra-day high of Rs 320.85 while Bharat Forge saw a momentum of more than 2% in the stock reaching to a high of Rs 1,379.20, intra-day.
The approval of the acquisition proposals is likely to boost the order books of defence companies.
As reported by Financial Express.com the Defence Acquisition Council (DAC), under the chairmanship of Defence Minister Rajnath Singh, granted Acceptance of Necessity (AoN) for five major capital acquisition proposals. These purchases are focused on improving India’s naval and coastal defence abilities, highlighting the government’s pledge to bolster defence infrastructure.
Also ReadIndia approves Rs 21,772 crore defence acquisition to boost Navy and coastal security ahead of Navy Day
A major part of the approval involves acquiring 31 New Water Jet Fast Attack Crafts (NWJFACs) for the Indian Navy. These fast vessels are built for critical functions like Low-Intensity Maritime Operations (LIMO), monitoring, and Search and Rescue (SAR) activities along India’s extensive coastline and island regions. Furthermore, they will be crucial in operations to combat piracy, especially in areas close to the nation’s maritime boundaries.
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