Most defense stocks gained on Tuesday following news reports that the Indian government is mulling massive projects to upgrade its defense fleet.
This caused the market capitalisation of defence companies to rise by Rs 20,747 crore to Rs 11.11 lakh crore as of 13:12 p.m.
The Ministry of Defence is likely to undertake major projects, including building seven advance frigates for the Indian Navy. For the Indian Army, the ministry will consider replacing T-72 tanks with modern, future-ready combat vehicles, ANI reported Monday.
The meeting to consider these proposals will take place on Tuesday at South Block, New Delhi. Defence Minister Rajnath Singh will chair the meeting, ANI reported.
Mazagon Dock Shipbuilders Ltd. jumped 8.60% to Rs 4,561.15 apiece on Tuesday. The stock is the top performing compared to the other stocks in the defence space. It was trading 5.76% higher at Rs 4,441.85.00 as of 13:15 p.m.
Garden Reach Shipbuilders & Engineers Ltd. was the second-leading stock, with an intraday gain of nearly 8%. It rose as much as 7.84% to Rs 1,974.80. At 13:16 p.m., the stock was trading 4.43% higher at Rs 1,912.50 apiece.
Zensar Technologies Ltd. was the worst performed in the defence space on Tuesday. It rose by as much as 1.67% to Rs 803.00. However, it erased all gains and was trading 0.66% higher as of 13:20 p.m.
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