Shares of domestic defence companies extended gains for the fourth consecutive session on Tuesay, with Bharat Electronics Ltd (BEL) touching a fresh 52-week high following new order announcements.
The Navratna public sector unit said it has received orders worth Rs 528 crore since its last disclosure on June 20. The contracts include radars, communication systems, electronic voting machines (EVMs), jammers, shelters, control centres, spares, and associated services.
The Nifty India Defence index rose over 1 percent in intraday trade and has gained more than 3 percent over the past four sessions.
Among other gainers, Bharat Dynamics Ltd and DCX Systems rose up to 2 percent, while Hindustan Aeronautics Ltd (HAL), Paras Defence and Space Technologies, Mazagon Dock Shipbuilders, and Garden Reach Shipbuilders & Engineers gained up to 1.5 percent.
The ongoing rally in defence stocks comes after NATO member nations agreed on June 25 to raise their defence spending target to 5 percent of GDP by 2035, up from the current 2 percent.
The move, aimed at boosting civil and military resilience in response to emerging threats, is expected to create more export opportunities and potential joint ventures for Indian defence manufacturers.
Addtionally, India is moving ahead with plans to enhance its surveillance capabilities following Operation Sindoor, with proposals to launch 52 dedicated satellites for the armed forces and frame a comprehensive military space doctrine.
Meanwhile, the Defence Research and Development Organisation (DRDO) is reported to be accelerating work on an upgraded version of the Agni-5 missile system, capable of delivering heavy conventional bunker-busting warheads.
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