Cochin Shipyard, Garden Reach Lead Defence Rally
Cochin Shipyard Ltd. hit the 10% upper circuit in trade today, day's before the stock trades ex-dividend.
Defence stocks experienced a significant rebound on Friday, with some shares soaring by as much as 10% in trade. Cochin Shipyard Ltd. snapped a four-day losing streak to finally gain in today's session, with Garden Reach Shipbuilders & Engineers Ltd. on the second spot on the leaderboard.
Cochin Shipyard led the charge, hitting the 10% upper circuit. The stock's uptick is particularly timely, as it is set to trade ex-dividend starting Sept. 23. The stock was trading at Rs 1,846.05 apiece, as of 12:57 p.m.
Additionally, Garden Reach Shipbuilders Ltd. and Mazagon Dock Ltd. recorded gains of 9.63% and 8.75%, respectively, while Bharat Dynamics rose by 5.5%.
Other notable gainers included Paras Defence and Space Technologies Ltd., which rose by 5% trading at Rs 1,124.70 apiece, and Bharat Electronics Ltd., which saw an increase of 2.46% on National Stock Exchange.
Last week most defense stocks gained following Indian government's approval for massive acquisitions to upgrade the naval fleet.
The renewed optimism seems to continue as Defence Acquisition Council’s recent approval of significant procurements totaling Rs 1,44,716 crore for the Armed Forces. Among the approved projects are the Future Ready Combat Vehicles and Air Defence Fire Control Radars for the Army, alongside various vessels for the Indian Coast Guard, including Dornier 228 aircraft and Next Generation Fast Patrol Vessels.
