The shares of some defence companies rose on September 8 as the 15-year defence modernisation plan announced by the Defence Ministry on September 5 boosted investor sentiment.
Nifty India Defence index rose more than half a percent to hover around 7,559 in the afternoon. The index has snapped a two-day losing streak.
The Indian Defence Ministry has laid out a 15-year roadmap for the industry, which outlines the needs for India's armed forces in the future. "As the nation stands on the threshold of embracing greater challenges and responsibilities in the forthcoming decades, it is but imperative that the Services be equipped accordingly," said the defence ministry's 2025 roadmap.
"Greater private-public sector partnership is thus the road ahead,” it added, while noting the need for at least 10 nuclear propulsion systems to support the carrier and other future warships. India aims to have 62 Rafale jets in service by 2030, including 36 for the air force that started arriving in 2020. Currently, the carriers deploy a fleet of Soviet-origin MiG-29K.
The roadmap also expects India to procure two electromagnetic aircraft launch systems and next-gen tanks. For missiles, the ministry is looking to procure forth-fifth gen Anti-Tank Guided Missile (ATGM), air-to-air missile systems and more, CNBC-TV18 reported.
All defence players stand to benefit after the final procurements are approved by the government, the news channel said. The shares of defence companies were trading in the green on September 8.
Cyient DLM shares rallied nearly 7 percent, while Data Patterns shares were up around 2.5 percent. Cochin Shipyard and Hindustan Aeronautics (HAL) shares were up around 1 percent, while Solar Industries and Bharat Electronics (BEL) shares were up more than 0.6 percent each.
Mazagon Dock Shipbuilders, BEML and Bharat Dynamics (BDL) shares were trading in the green with marginal gains. Bucking the trend, Paras Defence shares dropped over 1.5 percent, while Garden Reach Shipbuilders & Engineers (GRSE) shares were down around 1 percent.
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(With inputs from Reuters)
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