DEFENCE STOCKS SURGE ON GOVT FOCUS ON LOCALISATION
Stock prices of defence equipment manufacturers registered a sharp up-move on approval of Rs 38,900 crore capital expenditure plan for modernisation of Indian Armed Forces by the government on Thursday with a focus on domestic vendors.
The gainers on BSE included Bharat Electronics (9.27 per cent), Hindustan Aeronautics (10.31 per cent), Bharat Dynàmics (12.55 per cent), Bharat Forge (7.31 per cent), Walchandnagar Industries (9.99 per cent), Cochin Shipyard (2.08 per cent), Garden Reach Ship Builders & Engineers (1.03 per cent).
Focused on indigenous design and development these approvals include acquisitions from Indian industry of Rs 31,130 crore.
Defence stocks rallied encouraged by huge capital expenditure approved by the Defence Acquisition Council (DAC) in its meeting on Thursday under the chairmanship of defence minister Rajnath Singh for capital acquisition of various platforms and equipment required by the Indian Armed Forces.
BHEL also gained 5.31 per cent, the company is into manufacturing power plant and also has engineering expertise to contribute to defence related manufacturing.