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    Market Movers: Defence stocks rally up to 4% after govt's Rs 76,000 cr-push

    Synopsis

    The government as a council gave preliminary approval to military modernization projects costing Rs 76,000 crore, including the Navy's next-generation corvettes. The approval will help cut India's dependence on imports for military equipment as most of the projects will go to domestic manufacturers.

    stock analysisAgencies
    Shares of HG Infra Engineering jumped over 3 per cent after the company said it received the Letter of Award dated June 06, 2022, from Adani Road Transport Limited.
    NEW DELHI: Shares of defence companies defied the weakness in the broader market and managed to close with gains as the government as a council gave preliminary approval to military modernization projects costing Rs 76,000 crore, including the Navy's next-generation corvettes.

    The approval will help cut India's dependence on imports for military equipment as most of the projects will go to domestic manufacturers.

    This led to buying in many defence-related stocks, including Bharat Dynamics, Hindustan Aeronautics, Paras Defence, Bharat Electronics, Cochin Shipyard and Garden Reach Shipbuilders. They rose up to 4 per cent.

    "These (PSU defence) companies are the front runners to gain from any positive moves from the GOI as it is their one of the most important sources of business. Such a move from the GOI entails higher revenues and order book for the coming years. It gives higher visibility of numbers going forward and comfort to investors. We remain positive on BEL," said Ashwin Patil, Senior Research Analyst at LKP Securities.

    Order from Adani
    Shares of HG Infra Engineering jumped over 3 per cent after the company said it received the Letter of Award dated June 06, 2022, from Adani Road Transport Limited.

    The company has been contracted to execute civil works on Engineering Procurement & Construction (EPC) basis. "Development of an Access Controlled Six Lanes (Expandable to Eight lanes) Greenfield `Ganga Expressway' for 151 kilometer from Budan to Hardoi.

    The works need to be completed in 820 days.

    e-bus makers shine
    Reportedly, the Central government has asked states to replace ageing diesel-run public buses with electric ones. The directive shot to the state transport authorities has asked them to replace 32,000 buses.

    In recent days, many states, including West Bengal and Assam, have announced their plan to add electric buses.

    Following the report, buying was seen in most stocks involved in making electric buses. Ashok Leyland rose about 1 per cent while Olectra Greentech rose about 4 per cent. However, JBM Auto dropped about 2 per cent.



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    (What's moving Sensex and Nifty Track latest market news, stock tips and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more
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