Market Movers: Defence stocks rally up to 4% after govt’s Rs 76,000 cr-push

NEW DELHI: Shares of defence companies defied the weakness in the broader market and managed to close with gains as the government as a council gave preliminary approval to military modernization projects costing Rs 76,000 crore, including the Navy’s next-generation corvettes.

The approval will help cut India’s dependence on imports for military equipment as most of the projects will go to domestic manufacturers.

This led to buying in many defence-related stocks, including Bharat Dynamics,

, , Bharat Electronics, and Garden Reach Shipbuilders. They rose up to 4 per cent.



“These (PSU defence) companies are the front runners to gain from any positive moves from the GOI as it is their one of the most important sources of business. Such a move from the GOI entails higher revenues and order book for the coming years. It gives higher visibility of numbers going forward and comfort to investors. We remain positive on ,” said Ashwin Patil, Senior Research Analyst at .

Order from Adani

Shares of

jumped over 3 per cent after the company said it received the Letter of Award dated June 06, 2022, from Adani Road Transport Limited.
The company has been contracted to execute civil works on Engineering Procurement & Construction (EPC) basis. “Development of an Access Controlled Six Lanes (Expandable to Eight lanes) Greenfield `Ganga Expressway’ for 151 kilometer from Budan to Hardoi.

The works need to be completed in 820 days.

e-bus makers shine

Reportedly, the Central government has asked states to replace ageing diesel-run public buses with electric ones. The directive shot to the state transport authorities has asked them to replace 32,000 buses.

In recent days, many states, including West Bengal and Assam, have announced their plan to add electric buses.

Following the report, buying was seen in most stocks involved in making electric buses.

rose about 1 per cent while rose about 4 per cent. However, dropped about 2 per cent.



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