DE­FENCE STOCKS SURGE ON GOVT FO­CUS ON LOCALISATI­ON

The Asian Age - - Financial - RAVI RAN­JAN PRASAD

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.

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