HAL, BEL, HPCL: Defence and oil & gas stocks in the spotlight on January 20; here is why

Prime Minister Narendra Modi and UAE President Sheikh Mohamed bin Zayed Al Nahyan have set a $200 billion annual trade target by 2032 while laying out a broad agenda to shore up the ties.

Under the defence partnership, India and the UAE are eyeing defence industrial collaboration and cooperation in advanced technologies, cyberspace training, special operations, interoperability of their militaries and counterterrorism.

Another pact was inked to provide for the purchase of 0.5 million metric tonnes of LNG (liquefied natural gas) by Hindustan Petroleum Corporation Limited (HPCL) from Abu Dhabi National Oil Company Gas over a period of 10 years starting in 2028.

The UAE is India's second-largest supplier of LNG to India after Qatar.

Stocks in focus

Following the agreement, as per analysts, defence stocks such as Hindustan Aeronautics Limited (HAL) and Bharat Electronics (BEL), among others, are expected to be closely tracked.

In the oil & gas space, HPCL and GAIL India are expected to be in focus.

Another letter of intent was signed for joint work in developing space infrastructure.

Under this initiative, both sides will look to set up new launch complexes, satellite fabrication facilities, joint missions, space academies and training centres, the foreign secretary said.

A separate document was inked to provide for the UAE's participation in the development of a special investment region in Gujarat's Dholera.

This initiative will look at the establishment of an international airport, a pilot training school, an MRO (Maintenance, Repair and Overhaul) facility, a greenfield port, and a smart urban township, as well as projects related to railway connectivity and energy infrastructure, Misri added.

Modi and Al Nahyan welcomed the establishment of DP World and First Abu Dhabi Bank branches in GIFT City, reinforcing its emergence as a leading international financial centre.