BEML, Bharat Dynamics, HAL shares rise: Here is why defence stocks are rallying today

Shares of BEML were seen rising as the firm received an order worth over ₹80 crore from Indian Railways for the supply of utility track vehicles Shares of defence firms gained momentum on Tuesday, September 2, on various factors—including order wins and geopolitical talks. The Nifty India Defence sector rose 1.14% to the 7,663.60 level on Tuesday. The sector had surged 2% to today’s high of 7,724.35. Shares of BEML jumped 4.7%, taking the lead among the biggest contributors in the sector, followed by Cochin Shipyard (3.71%), Mazagon Dock (3.14%), Cyient DM (3.02%), Garden Reach Shipbuilders & Engineers (2.04%) and Data Patterns (1.72%). Further, Bharat Dynamics (1.29%), Paras Defence and Space Technologies (1.15%), Bharat Electronics (0.88%), Mishra Dhatu Nigam (0.68%) and Hindustan Aeronautics (0.64%) were also trading higher on Tuesday. According to a report from Financial Express, defence sources have said that Moscow is studying possible investment plans to make the Su-57 in India. The development comes after Prime Minister Narendra Modi and Russian President Vladimir Putin’s recent closeness at the SCO Summit in China. Also read: Upcoming dividends, stock splits and bonuses: ONGC, NTPC and Kalyan Jewellers among others in focus The report further stated that India has been looking forward to adding at least two to three squadrons of advanced fighter aircraft, with Russia’s Su-57 and America’s F-35 being the main contenders. People with knowledge on the matter have also shared that Hindustan Aeronautics (HAL) will likely become a key site for Su-57 production. Shares of BEML were seen rising as the firm received an order worth over ₹80 crore from Indian Railways for the supply of utility track vehicles. BEL shares rose on Tuesday as the company secured an additional order worth ₹644 crore. The PSU firm, however, did not disclose the details of the clients from whom these orders were received. Garden Reach Shipbuilders & Engineers Ltd (GRSE) has been in focus after the company last week said its shipbuilding segment continues to show strong prospects in both defence and non-defence markets, backed by the Indian Navy and Coast Guard’s acquisition plans and government initiatives aimed at boosting the broader shipbuilding industry. Another defence firm, Apollo Micro Systems, saw shares climb 12% on Tuesday after the company was approved as a production agency for the Multi-Influence Ground Mine (MIGM)—Vighana, under DCPP by the Defence Research and Development Organisation (DRDO). Also read: Ashok Leyland signs ₹5,000 crore deal with CALB; here is why the stock jumped 4% Meanwhile, Uttar Pradesh Chief Minister Yogi Adityanath on August 30 allocated 12,500 acres of land for defence manufacturing as part of the country's two upcoming defence industrial corridors, one of which is being developed in the state. Prime Minister Modi, in his Independence Day speech, had announced a project to develop an indigenous air-defence system. The announced project will be aimed at protecting India's vital military and civilian installations and delivering a decisive response to any enemy threat, a move that came amid concerns over security challenges emanating from Pakistan and China.