Defence Stocks On Rise After Rajnath Singh Comment
Shares of defence companies such as Bharat Dynamics, Bharat Electronics, Hindustan Aeronautics, Cochin Shipyard, and Data Patterns climb higher in trade after the comment
Following Defence Minister Rajnath Singh’s statement that the country's defence production recorded the highest ever growth in 2023-24, shares of defence companies surged up to 13 per cent in the Friday trading session.
“The value of production has reached Rs 1,26,887 crore in 2023-24, which is 16.8 per cent higher than the value of production of the previous financial year,” the defence minister wrote in a post on X.
He added that the government is committed to creating a more conducive regime for developing India as a leading global defence manufacturing hub.
Shares of defence companies such as Bharat Dynamics, Bharat Electronics, Hindustan Aeronautics, Cochin Shipyard, and Data Patterns climbed higher in trade after the post.
While in the afternoon trade, Data Patterns traded around 8 per cent and Cochin Shipyard gained more than 6 per cent
Rajnath Singh had previously set an ambitious target to export over Rs 50,000 crore worth of defence equipment by 2028-2029 when he assumed charge of the Defence Ministry for a second term.
The sector is optimistic as the Motilal Oswal Nifty India Defence Index Fund received robust subscription numbers. The asset management company stated on 04 July, that the fund, which is the first domestic passive fund focusing on the sector, raised Rs 1,676 crore during its new fund offer (NFO) period. This amount marked the highest collection ever by an equity index fund during its NFO period.
As of the end of May, the Nifty India Defence Index also demonstrated robust performance over the past one year and three years, achieving compounded annual growth rates of 177 per cent and 89.5 per cent, respectively.
