Shares of Mazagon Dock Shipbuilders and Garden Reach Shipbuilders & Engineers were under pressure in Friday’s trading session, after report about delays in India’s ambitious $6 billion submarine project. This development, as reported by Bloomberg, has marked a noticeable impact on defence stocks.
Mazagon Dock Shipbuilders saw its share price decline by 2.07 per cent to Rs 4,853 as of 2:31 PM IST, with the stock trading between a high of Rs 4,972.20 and a low of Rs 4,741.30 during the session.
Similarly, Garden Reach Shipbuilders & Engineers stocks also recorded a 2.76 per cent drop, trading at Rs 1,721.35. The stock also hit its intraday low at Rs 1,701.85.
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The Submarine Project
The submarine project which is part of “Make in India” initiative was made to enhance the Navy’s capabilities by building six advanced diesel-electric submarines and was seen also as crucial part to counter China’s growing influence in the Indian Ocean region. However, the project has been delayed by over a year, with further setbacks looming due to objections raised during sea trials in June, as reported by Financial Express.com.
Key players in the bid include Germany’s ThyssenKrupp Marine Systems, partnered with Mazagon Dock Shipbuilders, and Spain’s Navantia SA, aligned with Larsen & Toubro Ltd. Contractors have highlighted six procedural concerns, including unclear testing guidelines and alleged violations during trials, stalling the approval process.
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Stock Performance over the last 5 days
Over the past five days, Mazagon Dock Shipbuilders experienced a dip of 0.64 per cent, trading at Rs 4,853.90, down from its recent highs. Similarly, Garden Reach Shipbuilders & Engineers saw a sharper decline of 2.17 per cent, with its stock trading at Rs 1,723.10.
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