Defence stocks have brought in profits for investors in recent times
As the Indian Army issued a tender to buy critical defence systems from domestic manufacturers, BSE shares of big defence companies today reached sky high. It must be noted that the tenders were issued to procure drones, guns, and missiles among other critical requirements under the emergency procurement procedures.
On Sunday, the Army stated: “We have invited the Indian defence industry to offer critical defence equipment for emergency procurement. Proposals are being fielded for guns, missiles, drones, counter-drone, loiter munition, communication and optical systems, specialist Vehicles, engineering equipment and alternate energy resources.”
Among all the companies, shares of Bharat Dynamics zoomed the most, reaching an intraday high of 6 per cent. Shares of Paras Defence and Space Technologies also climbed to reach an intraday high of 4.3 per cent. Shares of Bharat Electronics, MTAR, and Solar Industries rose by 1 per cent, each. However, shares of BEML and Hindustan Aeronautics showed a reverse trend as they declined by 1 per cent from the previous close on the BSE.
The ‘Aatmanirbhar’ push is showing its effect as Defence stocks are gaining market attention in recent times. The founder and CEO of Marathon Trends-PMS, Atul Suri told the media, “The defence sector is overweight in my portfolio. The investment theme is emerging for the first time in India, and that too in a big way.” It is interesting to note that in the past year, defence stocks have brought in profits for investors with Hindustan Aeronautics surging a big 112 per cent, and BEL 60 and Paras Defence, a sober 4 per cent.
