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HAL, Bharat Forge, BEL, L&T shares gain after ban on import of 101 defence items

Bharat Heavy Electronics Limited (BHEL), Larsen & Toubro, Hindustan Aeronautics Limited (HAL), Bharat Forge gained following reports as the ban could bring an additional impetus for India's defence companies

twitter-logoBusinessToday.In | August 10, 2020 | Updated 14:32 IST
HAL, Bharat Forge, BEL, L&T shares gain after ban on import of 101 defence items
Shares of Hindustan Aeronautics Limited hit fresh 52-week high of Rs 1039.5 today, rising 9.66% on BSE, after opening with a gain of 9.19%

Shares of defence companies were trading higher in Monday's opening trade after Ministry of Defence announced over the weekend banning of 101 defence weapons and military platform items.

Bharat Heavy Electronics Limited (BHEL), Larsen & Toubro, Hindustan Aeronautics Limited (HAL), Bharat Forge gained following reports as the ban could bring an additional impetus for India's defence companies.

Shares of Hindustan Aeronautics Limited hit fresh 52-week high of Rs 1039.5 today, rising 9.66% on BSE, after opening with a gain of 9.19%. The stock trades higher than 5, 20, 50, 100 and 200-day moving averages. The share has risen 14% in one week, 8.4% in one month and 39% since the beginning of the year.

Similarly, BHEL share price opened with a gain of 2.13% today and later touched an intraday high of Rs 37.6, rising 6.67% on BSE. The stock has gained after 2 days of consecutive fall.

Shares of the aircraft manufacturing company were trading higher after reports of a ban on big-ticket items like the Light Combat Aircraft (LCA) MK I A.

Larsen and Toubro shares were trading as top gainers on NSE since opening bell today, rising 5.93% intraday post the news. Stock price of L&T gained 5% in one week and 3.17% in one month.

On a similar note, stock price of Bharat Forge opened with a gain of 5.89% and later touched an intraday high of Rs 434.8, rising 6.57% on BSE.

Cochin Shipyard stock also opened with a gain of 3.42% and later touched an intraday high of Rs 350, rising 5.53% on BSE. The stock of one of the few companies that manufactures items for the Indian Navy has risen 5.8% in one week and 5.16% in one month.

With defence stocks gaining, experts suggested that the actual impact on financials will be known if this ban initiative by the government translates into new order flows for the companies catering to the defence space.

The decision will offer an opportunity to the domestic defence industry to manufacture the items in the negative list by using their own design and development capabilities or adopting the technologies designed and developed by Defence Research and Development Organisation (DRDO) to meet requirements of the Armed Forces.

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