New Delhi, 28 April (IANS). After the India-France Rafael deal, a strong rally was seen in defense shares on Monday and a rise of up to 9 percent was recorded.
India has tied up with France to buy 26 Rafale Marine Fighter Jets for the Indian Navy for Rs 63,000 crore.
After this news, the Nifty Defense Index rose 4.5 percent, it was the biggest bounce in a day after April 15.
17 out of 18 companies in this index were positive, including Paras Defense and Space Technologies, Garden Reach Shipbuilders and Engineers and Data Pattern (India).
Paras Defense’s stock rose by 9.27 percent to close at Rs 1,142. This was the most growing stock in defense shares.
The stock of Garden Reach Shipbuilders and Engineers recorded a rise of 8.11 percent and closed at Rs 1,747.90.
Other major stocks such as Hindustan Aeronautics Limited (HAL) saw an increase of more than 5.5 percent, while the Majhgaon dock shipbuilders and Cochin Shipyard increased by 4.77 percent and 6.1 percent respectively.
Bharat Electronics Limited (BEL) also performed strongly during the season and closed up 3.28 percent.
Data Pattern (India) shares closed with 7.17 percent, Cochin Shipyard shares 6.12 percent, India Dynamics stock 5.42 percent and Solar Industries India’s stock closed with a gain of 2.48 percent.
The delivery of 26 Rafael-Merin jet aircraft manufactured by France’s Dassault Aviation is expected to be within 37 to 65 months.
These fighter aircraft will be deployed on aircraft carriers INS Vikrant and INS Vikramaditya, which will strengthen the Indian Navy’s capacity to combat any threat in the Indian Ocean.
The French marine fighter aircraft is a strong aircraft designed to face the difficult conditions involved in the aircraft career operation.
-IANS
ABS/
