Defence stocks boom: HAL, Mazagon Dock, Cochin Shipyard hit record highs; check key reason behind this rally

On June 17, HAL informed the exchanges in a filing that it has received an RFP for the procurement of 156 LC Helicopters. The state-owned company said that out of the 156 Light Combat Helicopters, 90 helicopters are being procured for the Indian Army and 66 helicopters for the Indian Air Force (IAF).

Hindustan Aeronautics Ltd stock has surged nearly 12% in the past one week and is currently trading at ₹5,427.45 apiece on the NSE. In the past one week defence sector stocks have witnessed a rally and are on an upward trend on the back of Defence Minister Rajnath Singh’s push to indigenous defence sector companies. The Minister set a target to generate military exports worth ₹50,000 crore annually in addition to fast-tracking initiatives under Make-In-India.

Defence stocks extended the rally on Tuesday, after double-digit gains in the past one week with Paras Defence, Garden Reach Shipbuilders & Engineers (GRSE) and HAL emerging as the top gainers. Paras Defence shares rallied as much as 19% after multiple block deals. While GRSE gained over 12%, other leading companies in the defence sector saw an upward momentum between 5 to 8%.

Paras Defence and Space Technologies

Paras Defence and Space Technologies shares gained nearly 19% to trade at a 52-week high of ₹1,376.3 apiece on the NSE after multiple block deals. The stock has rallied nearly 54% in the last one week. Shares of Paras Defence were trading at ₹1,365.05 apiece, up 17.99 apiece, on the NSE.

Cochin Shipyard

Cochin Shipyard shares rallied 8% to hit a fresh 52-week high of ₹2292 apiece on the NSE on Tuesday. The stock gained over 17% in one week and is currently trading at ₹2,284.15, up 7.62%, on the NSE.

Mazagon Dock Shipbuilders Ltd

Mazagon Dock Shipbuilders’ shares surged nearly 9% on June 18 to trade at a 52-week high of ₹4,215.55 apiece. The stock has gained over 29% in the last one week. Shares of Mazagon Dock Shipbuilders were trading at ₹4,163 apiece, up 7.36%, on the NSE at 11:49 am.

Astra Microwave Products Ltd

Shares of Astra Microwave Products gained as much as 7% to touch a 52-week high of ₹1036.15 apiece on the NSE on Tuesday. The stock has gained nearly 19% in the last one week. shares of Astra Microwave were trading 6.17% higher at ₹1,012.8 apiece on the NSE.

Bharat Dynamics Ltd

Bharat Dynamics shares gained 4% to trade at an intra-day high of ₹1,650 apiece on the NSE. The stock has rallied 14% in the past week. Shares of Bharat Dynamics are currently trading at ₹1,628.05 apiece, up 2.86%, on the NSE.

Bharat Electronics Ltd

Shares of Bharat Electronics surged over 3% to trade at an intra-day high of ₹319.75 apiece on the NSE on Tuesday. The stock has gained nearly 12% in a week. Bharat Electronics Ltd shares are currently trading 3.07% higher at ₹319.1 apiece on the NSE.

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