Several defence company stocks in India went up on Thursday after a big announcement. India and the United States have agreed to sign a 10-year defence deal to make their defence partnership stronger.
Stocks That Gained
The Nifty India Defence index rose by 0.65%. These companies saw their shares go up by more than 1%:
- HAL (Hindustan Aeronautics Ltd)
- BEML
- Paras Defence and Space Technologies
- Data Patterns (India)
- Cyient DLM
- Dynamatic Technologies
- Mazagon Dock Shipbuilders
These companies are involved in making defence products, aircraft, parts, and warships. Investors were excited about future business growth due to this new deal.
Stocks That Fell
However, not all defence stocks gained. Some companies saw their share prices drop by more than 0.5%, including:
- Bharat Dynamics
- Unimech Aerospace and Manufacturing
- Astra Microwave Products
- Mishra Dhatu Nigam
- DCX Systems
- Zen Technologies
The India-US Defence Deal
Defence Minister Rajnath Singh and US Defence Secretary Pete Hegseth had a phone call recently. During the conversation, they agreed to sign a new 10-year defence framework later this year. This deal will help both countries work closely on defence equipment, sales, and production.
The Pentagon (US Defence Department) confirmed this in a statement on Wednesday.
Jet Engine Deals in Focus
In the call, Rajnath Singh asked the US to speed up the delivery of GE F404 engines for India’s Tejas fighter jets.
He also pushed for a quick agreement between HAL and GE Aerospace to jointly build F414 jet engines in India. This could be a big step in India’s plan to make more defence equipment within the country.
Summary
This upcoming defence agreement between India and the US is giving a boost to India’s defence sector. It could lead to more partnerships, joint production, and major defence projects in the coming years.
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