On Monday, defence sector stocks saw a spike in prices, Hindustan Aeronautics gained 1.20 percent, Mazagon Dock Shipbuilders gained 2.41 percent, Cochin Shipyard by 2.56 percent followed by Bharat Electronics, Garden Reach Shipbuilders, Astra Microwave Products, MTAR Technologies, and Bharat Dynamics.
India’s government is ramping up its defence preparedness in order to prepare for the potential integration of advanced combat equipment and increased mobility in future years.
India and the United States are expected to increase technological and trade cooperation, during Prime Minister Narendra Modi’s state visit to Washington DC on June 21st.
To strengthen India’s goal of Make in India and Atmanirbhar Bharat, the government has planned bilateral defence cooperation between the two countries, as well as the establishment of a defence industrial cooperation roadmap.
Second, the Nations’ strong trade and investment cooperation will be strengthened. Third, to interchange technological components that interact with several other sectors like telecommunications, space, manufacturing, and investing.
According to a TOI report, India is likely to sign a $3 billion agreement for the purchase of armed drones with US defence.
India has planned to develop combat aircraft with the assistance of US-based General Electric and Hindustan Aeronautics, which will jointly manufacture GE-F414 turbofan engines in India for use in Tejas Mark 2 fighter fighters.
This agreement will benefit the local defence sector, and there will be enough opportunities for indigenization manufacturers.
By collaborating with the US, the Indian government is taking significant steps to diversify its defence equipment portfolio in order to reduce its reliance on Russian systems.
This will eventually help both countries improve their military interoperability and engage in joint research, development, and production of defence equipment.
This action may boost India’s defence industry to new heights and improve its reputation as a partner in international and regional security.
Defence Stocks to Watch
Chandan Taparia of Motilal Oswal said, “One can buy shares of Mazagon Dock Shipbuilders, Bharat Dynamics Ltd or BDL and Hindustan Aeronautics Ltd or HAL. These defense stocks are expected to give around 15 to 20 per cent return to its shareholders in next three months. Further, IIFL securities have provided up to a 20% upside for Cochin Shipyard.
Written by Omkar C
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