Defence Stocks Surge Up to 10% as Major Procurement Boosts Sentiment

20 Sep 2024 , 04:24 PM

Defence stocks rebound on September 20, recording gains up to 10% after recent profit-taking.

At the time of writing at 4:22 pm, the shares of Paras Defence and Bharat Electronics closed at around 5%, while Hindustan Aeronautics gained 2.79%.

Bharat Dynamics jumped 3.45% to ₹1,160, and Mazagon Dock along with Garden Reach Shipbuilders surged 7.42% to ₹4,360 per share.

Cochin Shipyard saw the biggest jump, gaining 10%. The stock will trade ex-dividend from September 23, making September 20 the last day to buy for dividend eligibility.

Cochin Shipyard is also set to receive $30 million in inflows after being included in the FTSE All-World Index, with rebalancing to happen at the end of trade on September 20.

PSU defence stocks, including Mazagon Dock, Cochin Shipyard, and Garden Reach Shipbuilders, faced profit-booking in the last two months after a massive rally over the past year.

On September 4, the Defence Acquisition Council (DAC) approved major defence procurements worth ₹1,44,716 crore for the Armed Forces, including Future Ready Combat Vehicles (FRCVs) and Air Defence Fire Control Radars.