Defence Stocks Surge As India-UK Announce Rs 4,150 Crore Defence Pact; Mishra Dhatu, Mazagon Dock Lead Rally
Defence counters closed largely higher as India and the United Kingdom announced a Rs 4,150 crore defence deal.
Shares of indigenous defence players saw an uptick close to the end of Thursday's trading session as India and the United Kingdom announced a £350 million or Rs 4,157 crore deal to deliver UK missiles for the Indian Army. Mishra Dhatu Nigam Ltd. and Mazagon Dock Shipbuilders Ltd. lead the rally.
The announcement follows British Prime Minister Keir Starmer's meeting with Prime Minister Narendra Modi in Mumbai and as the UK Carrier Strike Group participates in complex air and naval exercises in the Indian Ocean with the Indian Military. The deal paves the way for a broader complex weapons partnership between the UK and India, currently under negotiation between the two governments.
“I am hopeful that this will pave the way for a deeper relationship between our two defence industries, particularly in the development of electric engines for naval ships and in air defence," said UK Defence Secretary John Healey MP.
Defence Stocks Share Price Today
Among the defence stocks, Mishra Dhatu Nigam lead the gains, rising 2.89% to end at Rs 393.90 on Thursday. Mazagon Dock Shipbuilders came second with a 2.63% increase, hitting Rs 2,888.70 apiece.
Bharat Dynamics also performed well, ending 1.67% higher at Rs 1,520.30 per share, while Solar Industries increased by 1.66% to end at Rs 14,239. apiece.
Other stocks which saw a sharp advance include Ideaforge Technology, which surged 1.63% to Rs 494.45 apiece, Data Patterns (India) up 1.57% to Rs 2,824.90, and Bharat Forge, which rose 1.54% to Rs 1,209.30 per equity share.
The Nifty India Defence index posted the second highest gains amongst sectoral indices, closing 1.53% higher as compared to a 0.54% advance in the benchmark NSE Nifty 50.
