Hindustan Aeronautics, Bharat Electronics, Cochin Shipyard: Defence shares in focus as French President Emmanuel Macron arrives in India

Shares of defence equipment makers were trading higher on Tuesday, February 17, as French President Emmanuel Macron arrived in India on Monday night for a four-day visit to India till February 19.

The measure of defence companies on the National Stock Exchange (NSE), India Defence index, rose as much as 1.25% with all the 18 stocks in the index trading higher on hopes of India and France advancing discussions to acquire Rafale fighter planes.

Prime Minister Narendra Modi will travel to Mumbai today where he will meet President Macron.

"At around 3:15 PM on 17 February, the two leaders will hold bilateral engagements at Lok Bhavan, Mumbai. During these engagements, they will review the progress made in the India-France Strategic Partnership. Their discussions will focus on cementing the strategic partnership and further diversifying it into new and emerging areas. Prime Minister Modi and President Macron will also exchange views on issues of regional and global importance," Prime Minister's Office said in a press release.

Cochin Shipyards was top gainer in the NIFTY India Defence index, the stock climbed nearly 6% to ₹1,554 after it was declared as the lowest (L1) bidder for the tender floated by the Ministry of Defence for the construction of 5 nos. of Next Generation Survey Vessels (NGSV) for the Indian Navy.

The estimated total order value is around ₹5,000 crore.

Paras Defence, Mtar Technologies, Dynamatic Technologies, Garden Reach Shipbuilders and Engineers, Unimech Aerospace and Manufacturing and Bharat Electronics also rose between 1.14%-2.34%.

As of 9:45 am, NIFTY Index defence index traded 1.05% higher at 8,098.35, outperforming the NIFTY50 index which was down 0.4%.