Shares of Mazagon Dock and Garden Reach Shipbuilders & Engineers (GRSE) gained up to 4% on May 27 after a report said orders to the tune of Rs 44,000 crore could soon be placed for the Navy.
Citing defence ministry sources, Times of India reported on May 26 that the procurement case for 12 advanced minesweepers or mine countermeasure vessels (MCMVs) for the Navy, at an estimated cost of around Rs 44,000 crore, will soon be placed before the Rajnath Singh-led Defence Acquisition Council for the grant of “acceptance of necessity (AoN)”.
The MCMVs will bridge the gap in India's maritime defense to detect, track and destroy underwater mines.
The MCMVs will excel in locating, identifying, and neutralising sea mines, ensuring safe passage for friendly boats, and combating possible maritime security threats.
These vessels will conduct extensive surveys of sea routes, detecting and removing any undersea impediments or dangers to ensure safe and efficient marine traffic navigation.
At 10:06 am on May 27, shares of GRSE were trading 4% higher at Rs 2,833 apiece and those of Mazagon Dock were trading 3% higher at Rs 3,667 apiece.
Nifty Defence Index was bucking the broader negative trend on May 27 by rising 1.76% higher, with Midhani, GRSE, Mazagon Dock leading the gains.
Shares of Bharat Dynamics and Cochin Shipyard were trading 3% higher. 17 of the 18 constituents of the index were trading in green even though the benchmarks were trading sharply lower.
At 10:27 am, the Sensex was down 840.06 points or 1.02 percent at 81,336.39, and the Nifty was down 241.45 points or 0.97 percent at 24,759.70. About 1,370 shares advanced, 1,781 shares declined, and 149 shares were unchanged.
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