From BEL, HAL to Mishra Dhatu Nigam— defence stocks surge amid reports of Indian Army to get ₹30,000 crore QRSAM boost
Several defence stocks, including BEL, HAL and Mishra Dhatu Nigam, saw healthy gains in intraday trade on Tuesday, June 10, amid reports that the Indian Army is all set to get a ₹ 30,000 crore boost with a new surface-to-air missile system.
The Nifty India Defence index rose by over a per cent during the session, with stocks such as Dynamatic Technologies, Data Patterns (India), Astra Microwave Products and DCX Systems, jumping 2-7 per cent.
According to an ANI report, the Indian Army is all set to get a ₹ 30,000 crore boost with a new surface-to-air missile system, which the Defence Ministry could soon approve for acquisition.
"The Defence Ministry is scheduled to take up the proposal for buying three regiments of the indigenous Quick Reaction Surface to Air Missile system (QRSAM) for the Army Air Defence for deployment along both western and northern borders," ANI reported, quoting defence officials saying so.
The ANI report further added that the Army Air Defence is also getting a number of new radars, very short-range air defence systems, along with jammers and laser-based systems to deal with drones of Turkish and Chinese origin.
Defence stocks have been on a solid uptrend in the wake of Operation Sindoor in May.
Defence stocks such as Garden Reach Shipbuilders, Cochin Shipyard, Zen Technologies, BEML, Mishra Dhatu Nigam, Data Patterns, BDL and BEL have surged 25-80 per cent over the last one month.
Stocks such as Solar Industries, MTAR Technologies, Mazagon Dock Shipbuilders, Dynamatic Tech, HAL, Cyient DLM and Paras Defence have jumped 10-25 per cent in the same period.
Experts say defence stocks still remain long-term bets due to their solid growth prospects. However, due to the recent rise in stock prices, there could be intermittent profit booking.
"Defence stocks have more steam left for the long term. There could be some profit booking now and then. The story is intact for the long term due to expectations of an increase in the defence budget. So, investors should remain invested for at least the next one to two years," said Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd.
Tapse recommends buying four defence stocks- Data Patterns, HAL, BEL and BEML- for the long term. He pointed out that the Defence Research and Development Organisation (DRDO) has transferred nine advanced defence technologies to ten public and private sector partners, which could benefit stocks like BEL and BEML.
Read all market-related news here
Read more stories by Nishant Kumar
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Mint
an hour ago
- Mint
Australian shares hit record peak as US-China revive trade truce
June 11 - Australian shares rose to a record high on Wednesday, supported by banks and miners, as an agreement between U.S. and Chinese officials on a framework to revive their trade truce reinforced hopes of easing global economic tensions. The S&P/ASX 200 index was up 0.4% at 8,623.40 points, as of 0044 GMT, after climbing 0.8% to a record close on Tuesday. U.S. and Chinese officials agreed on a framework to put their trade truce back on track and resolve China's export restrictions on rare-earth minerals and magnets at the conclusion of two days of intense negotiations in London. An U.S.-China settlement would pacify investors around the world, calming jitters surrounding a potential escalation of trade wars between the world's two largest economies. Heavily dependent on export to China, Australian miners rose 0.7%, defying weaker iron ore prices driven by expectations of rising supply. Mining giants BHP, Rio Tinto and Fortescue climbed 2.2%, 1% and 2.4%, respectively. Financials were up 0.4% with the "big four" banks rising between 0.3% and 0.5%. Energy stocks advanced nearly 2% to their highest point in more than three months, buoyed by stronger oil prices amid optimism that a U.S.-China trade deal could support global economic growth and boost oil demand. Among corporate news, property services business John Lyng Group surged more than 18% after it announced a buyout offer from Australian fund manager Pacific Equity Partners for an undisclosed value. Meanwhile, shares of Qantas remained largely unchanged after the airline announced the decision to close its Singapore-based budget carrier, Jetstar Asia. New Zealand's benchmark S&P/NZX 50 index rose 0.7% to 12,647.44 points. Fletcher Building surged nearly 10% after the construction materials maker said it has received interest from parties for its businesses, including the construction division. This article was generated from an automated news agency feed without modifications to text.
Mint
an hour ago
- Mint
‘Consensus reached on Geneva framework,' say US, China officials
The United States and China have reached a preliminary agreement on a framework to ease trade tensions, based on the consensus established during talks in Geneva, according to negotiators from both countries, Bloomberg reported. 'We have reached a framework to implement the Geneva consensus,' US Commerce Secretary Howard Lutnick told reporters in London. This comes after nearly 20 hours of talks held over two days in a Georgian-era mansion near Buckingham Palace, China's chief trade negotiator Li Chenggang stated that both the US and Chinese delegations will now present the proposed framework to their respective leaders for further consideration. 'Once the presidents approve it, we will then seek to implement it,' Lutnick added. Moreover, US Trade Representative Jamieson Greer said there were no other meetings scheduled, but added that the American and Chinese sides talk frequently and are able to do so whenever they need, according to a report by Bloomberg. Following nearly 20 hours of talks held over two days in a Georgian-era mansion near Buckingham Palace, China's chief trade negotiator Li Chenggang stated that both the US and Chinese delegations will now present the proposed framework to their respective leaders for further consideration. (With inputs from Bloomberg)
Time of India
an hour ago
- Time of India
Asian stocks to track US gains on trade talk hopes
Live Events (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel Stocks in Asia are set to follow gains on Wall Street as investors monitor trade discussions between the US and China that Commerce Secretary Howard Lutnick said were 'going really, really well.'Equity futures pointed to advances in Sydney, Tokyo and Hong Kong after the S&P 500 closed 0.6% higher. Tesla Inc. led gains in megacaps. Bonds barely budged after a $58 billion sale of three-year notes, the first in a trio of offerings that will culminate in Thursday's sale of 30-year debt. The dollar saw small moves ahead of a key inflation report, while Bitcoin tested its record between the US and China extended into their second day in London, with a Treasury official saying the teams were trying to iron out technical details.'Any materially positive or negative trade-talk headlines out of London, where US and Chinese negotiations remain underway, could meaningfully move markets,' said Tom Essaye at The Sevens Wednesday is expected to show US consumers probably saw slightly faster inflation in May, notably for merchandise, as companies gradually pass along higher import duties. That may reinforce the Federal Reserve's wait-and-see stance toward further easing as it assesses the impact of tariffs, with traders increasingly betting that the central bank will cut interest rates just once this of goods and services, excluding volatile food and energy costs, are expected to show a 0.3% advance in May, the most in four months. The so-called core consumer price index, which is regarded as a better indicator of underlying inflation, is seen accelerating for the first time this year — to 2.9% — on an annual basis, based on the median projection.A survey conducted by 22V Research showed 42% of investors believe that the market reaction to CPI data will be 'risk-on', 33% said 'mixed' and 25% 'risk-off'. It's the first time the reaction has favored risk-on since August 2024, 22V said.'The combination of the May inflation figures and upcoming Treasury supply will provide investors tradable events and add to the market's collective understanding of the early fallout from the trade war as well as demand for US debt in the current environment,' said Ian Lyngen at BMO Capital on long-term global debt have soared in recent weeks as concern over spiraling debt and deficits led some investors to shun the securities and prompted others to demand a higher premium for the risk of lending to betting that yields on long-dated Treasuries will keep rising faster than those on shorter notes risk getting burned, according to BNP Paribas SA's Guneet Dhingra. He said 30-year bonds already price in the worsening fiscal picture and could rebound if there's strong demand for an auction or deficit fears ease.
