Shares of defence companies, including Hindustan Aeronautics Ltd. (HAL), Mazagon Dock Shipbuilders, and Garden Reach Shipbuilders & Engineers Ltd. (GRSE), increased by as much as 10% on Tuesday, 4 March in track with a surge in European defence equities.
The European military rally was sparked by US President Donald Trump’s inability to guarantee European security, which forced European countries to reevaluate their defence plans and resources.
The GRSE led the advances after four declining sessions, rising 9.61% to Rs 1,331.05 per share on the NSE. HAL then surged 4.49% to Rs 3,330 per share. Mazagon Dock Shipbuilders and Cochin Shipyard saw gains of 5.52% and 7.4%, respectively, in intraday trading, while Bharat Electronics and Paras Defence & Space Technologies surged up to 3%.
The strong gains for European defence corporations on Monday are accompanied by a jump in local defence stocks. France’s Thales, Italy’s Leonardo, and Germany’s Rheinmetall all experienced increases in their stocks of 15.3%, 17.3%, and 16.7%, respectively.
The UK’s BAE Systems rose 14.3%, while Sweden’s Saab rose 11.6%. The biggest one-day increase since November 2020 was an 8% rise in the Stoxx Europe Aerospace & Defence Index.
The report from the Indian Air Force’s Empowered Committee for Capability Enhancement, headed by Defence Secretary Rajesh Kumar Singh, was delivered to Defence Minister Rajnath Singh on 3 March. The committee has recommended medium- and long-term capability enhancement measures, with a strong focus on indigenization and private-sector participation to boost efficiency and capacity expansion.
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