Bharat Dynamics, HAL, Mazagon Dock shares gain on clearance of defence deals

10 Oct 2024 , 03:03 PM

On Thursday, October 10, shares of military companies Bharat Dynamics, Mazagon Dock Shipbuilders Ltd., Paras military Ltd., Hindustan Aeronautics, and Garden Reach were trading higher.

The move occurred after the Cabinet Committee on Security (CCS), chaired by Prime Minister Narendra Modi, approved two defence deals critical to the country’s security.

According to sources, CCS has cleared the contract to purchase 31 Predator drones from the United States. Under the terms of the agreement, India would receive 31 High Altitude Long Endurance (HALE) UAVs, with the Navy receiving 15 SeaGuardian drones and the Army and Indian Air Force receiving eight SkyGuardian land versions.

The MQ-9B drone is a derivative of the MQ-9 “Reaper,” which utilised a modified Hellfire missile to assassinate al-Qaeda leader Ayman al-Zawahiri in the heart of Kabul in July 2022.

According to the article, the second significant defence agreement approved by the CCS is for the manufacture of two nuclear-powered attack submarines at the Ship Building Centre in Vishakhapatnam, which will cost over ₹45,000 Crore.

Furthermore, according to the source, private sector enterprises such as Larsen and Toubro will play a significant role in the production of the two new nuclear submarines.

At around 2.15 PM, HAL was trading 1.99% higher at ₹4,473.65 per piece. On the other hand, Bharat Dynamics was trading 4.46% higher at ₹1,215 per piece on NSE. 

Further, Mazagon Dock was trading 7.58% higher at ₹4,394.95 against the previous close of ₹4,086.95 on NSE. The counter rose to an intraday high of ₹4,510.

 

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