The share price of defence companies continued their winning momentum on September 19 after the Indian Army released a tender a day earlier, signalling new orders for guns, drones and vehciles among others.
The army said on September 18 that in keeping with its commitment to "fight future wars with indigenous solutions", it has invited the domestic defence industry to offer critical equipment for emergency procurement.
Proposals are being fielded for guns, missiles, drones, counter drone, loiter munition, which are aerial weapons systems, communication & optical systems, specialist vehicles, engineering equipment and alternate rnergy resources, the army said.
Shares of Bharat Dynamics were up 3 percent, Bharat Electronics 1 percent, MTAR Tech 1 percent, Paras Defense 3 percent and Solar Industries rose 1 percent. BEML and Hindustan Aeronautics were marginally lower.
Smallcap stocks like Mishra Dhatu Nigam, Apollo Micro and Data Patterns saw even greater buying and jumped up to 10 percent.
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Defence stocks have been in the spotlight in recent months as the country doubles down on Made in India equipment to cut down on imports. Some names such as Hindustan Aeronautics, BEL and Bharat Dynamics have delivered returns in the range of 60 to 140 percent so far this year.
Analysts are also upbeat on the sector.
Atul Suri, Founder & CEO, Marathon Trends– MS, told CNBC TV18 on September 19 said that the defence sector is overweight in his portfolio. He underlined that this investment theme was emerging for the first time in India and that too in a big way.
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