New Delhi, April 28 Defence stocks saw a strong rally on Monday, climbing over 9 per cent, as the government inked a Rs 63,000 crore deal with France to purchase 26 Rafale Marine fighter jets for the Indian Navy.
The Nifty Defence index rose by 4.5 per cent, marking its largest intra-day gain since April 15.
Seventeen out of its 18 constituents were in the positive territory, with notable gains from companies such as Paras Defence and Space Technologies, Garden Reach Shipbuilders and Engineers and Data Patterns (India).
Paras Defence led the charge, closing the intra-day trading session at Rs 1,142 on the National Stock Exchange (NSE) -- marking a significant 9.27 per cent surge.
Additionally, the company revealed in a filing on Friday its board will meet on April 30 to consider a potential stock split, approve audited financial results for FY25, and recommend a dividend, further boosting investor sentiment.
Garden Reach Shipbuilders, another key player in the sector, surged by 8.11 per cent on the NSE.
Other major stocks like Hindustan Aeronautics Limited (HAL) saw a rise of over 5.5 per cent, while Mazagon Dock Shipbuilders and Cochin Shipyard gained 4.77 per cent and 6.1 per cent, respectively.
Bharat Electronics Limited (BEL) also experienced a notable increase by rising over 3.28 per cent during the session.
The 26 Rafale-Marine jets for the Navy, manufactured by Dassault Aviation of France, are expected to be delivered within 37 to 65 months. The delivery of all the planes is scheduled to be completed by 2030-31.
The Rafale procurement will include weapons, simulators, spares, associated ancillary equipment, crew training and logistics support for the Indian Navy from the French government. Besides, it includes indigenous manufacturing of components under offset obligations as part of the 'Atmanirbhar Bharat' initiative,
The fighter jets will be deployed on aircraft carriers INS Vikrant and INS Vikramaditya, strengthening the Indian Navy’s capability to counter any threat emerging in the Indian Ocean.
The French maritime fighter is a sturdy aircraft that incorporates design features to withstand the rough conditions involved in aircraft carrier operations in a highly corrosive environment.
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