Defence related companies surge as government clears Rs 80,000 crore orders

MUMBAI: Shares of companies involved in defence sector rallied as much as 8.6 per cent today after the government cleared defence projects worth Rs 80,000 crore.

This includes indigenously built six stealth submarines at a cost of around Rs 50,000 crore and purchase of 12 Dornier surveillance aircrafts at Rs 1,850 crore.

The move is aimed at boosting domestic industry of the country which imports up to 70 per cent of its military hardware.

The move will benefit companies such as Pipavav Defence, Larsen & Toubro, Bharat Electronics and BEML.

The government has also placed orders to purchase 8,356 Israeli antitank guided missiles worth Rs 3,200 crore for the Indian Army. The Army will also purchase 321 launchers for the missile.

At 11:30 a.m.; BEML was up 5.65 per cent, Pipavav Defence & Offshore Engineering gained 4.76 per cent, BEL moved 5.62 per cent higher, L&T rose 0.74 per cent and BHEL was 3.44 per cent higher.