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Garden Reach Shipbuilders and Engineers jumped 20% while Ideaforge Technology and Mazagaon Dock Shipbuilders surged over 10%. Cochin Shipyard rose 8.9% and Mishra Dhatu Nigam and Bharat Dynamics gained 8.4% and 6.4%,respectively. Paras Defense & Space Technologies moved 6.2% while DCX Systems and Hindustan Aeronautics rose over 4% each.
Analysts said the price spike on Wednesday was more on account of the sentiment boost in reaction to Germany’s outsized defence spending after being battered in the recent sell-off.
“Defence stocks were hit the most in the recent fall and now, opportunistic money is chasing these stocks because this sector is expected to be leader in a market recovery,” said Vinit Bolinjkar, Head of Research, Ventura Securities.
Bolinjkar said the $800 billion opportunity from Europe’s potential defence spending opens up the possibilities for India’s defence companies as the country aims to boost manufacturing and exports of equipment in the coming years.
The Nifty India Defence Index soared 4.9% on Wednesday with all 16 stocks ending higher. Benchmark Nifty advanced 0.3%. The Nifty India Defence Index is down 10.4% in the past three months while benchmark Nifty is down 4.4% in the same period.
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https://economictimes.indiatimes.com/markets/stocks/news/germanys-big-military-plans-fire-up-indian-defence-stocks/articleshow/119232467.cms
