PSU defence stocks GRSE, HAL, Mazagon Dock rally up to 8% ahead of defence ministry meeting
defence ministry meeting to undertake projects.
The shares of Mazagon Dock Shipbuilders and GRSE surged up to 8% to their day’s high of 4,560 and Rs 1,940.75 respectively while those of HAL rallied 5% to Rs 4,925. The surge in the sector also pushed the shares of Bharat Dynamics up by 4% to Rs 1,356.
The rally in HAL shares was also fueled by the Cabinet Committee on Security approving the procurement of 240 AL-31 FP aero-engines from the company.
The projects to be discussed in the defence meeting will include the construction of seven advanced frigates for the Indian Navy and the Indian Army's proposal to replace its T-72 tanks with modern Future Ready Combat Vehicles (FRCVs).
The Indian Navy's plan involves acquiring seven new warships under Project 17 Bravo, which will be the most advanced stealth frigates ever built in India, following the Nilgiri-class frigates currently under construction, according to defence officials.
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Defence sources indicated that the Defence Acquisition Council (DAC) is expected to approve issuing a tender worth approximately Rs 70,000 crore to Indian shipyards under the 'Make in India' initiative, including private sector shipyards, as reported by ET quoting news agency ANI.
The tender will likely involve Category A shipyards, such as Mazagon Dock Shipbuilders, Garden Reach Shipbuilders and Engineers Limited, Goa Shipyard Limited, and Larsen & Toubro, among others. To expedite the project and prevent
