Defence stocks rise up to 2% as MoD inks Rs 4,666-cr contracts for battle carbines, torpedoes

Defence stocks rise up to 2% as MoD inks Rs 4,666-cr contracts for battle carbines, torpedoes

• Defence stocks rose after Rs 4,666 crore contracts for carbines and torpedoes
• Bharat Forge signed its largest small arms contract worth Rs 1,667 crore
• Nifty India Defence index gained 1.3 percent, snapping a three-day losing streak

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Defence stocks were trading on a positive note on December 31 with shares of BEML, Bharat Electronics, Bharat Dynamics, Bharat Forge, and Hindustan Aeronautics climbing 1-2%. The stocks rose after the Ministry of Defence Tuesday signed contracts worth Rs 4,666 crore for battle carbine, and torpedoes.

Bharat Forge's shares rose after the company signed its largest small arms contract with the Ministry of Defence worth Rs 1,667 crore for supplying indigenously designed and developed close quarters battle carbines.

At 10:20 am on December 31, Nifty India Defence index was trading 1.3% higher at 7,745.6, thus snapping its three-day losing streak.

The defence ministry on Tuesday signed contracts worth Rs 4,666 crore to procure over 4.25 lakh close quarter battle carbines and 48 heavy torpedoes.

The contract for the battle carbines along with accessories worth Rs 2,770 crore for the Indian Army and the Indian Navy were signed with Bharat Forge Ltd and PLR Systems Pvt Ltd, the ministry said.

"This achievement marks the culmination of an extraordinary, persistent effort to equip Indian soldiers with world-class lethality, replacing legacy systems with cutting-edge indigenous technology under the 'Aatmanirbhar Bharat' vision," it said.

The contract for the procurement and integration of 48 heavyweight torpedoes along with associated equipment for Kalvari class submarines of the Indian Navy at an approximate cost of Rs 1,896 crore was signed with WASS Submarine Systems SRL, Italy.

The acquisition will enhance the combat capability of the six Kalvari class submarines, the ministry said.

The delivery of torpedoes will commence from April 2028 and will be completed by early 2030.

"These torpedoes have significant operational capabilities and advanced technological features," the ministry said in a statement.

"The acquisition underscores the Government's commitment to meet the operational requirements of the Indian Navy through the induction of niche technologies and advanced capabilities weapons," it said.