Bharat Dynamics, Cochin Shipyard, Mazagon Dock, other defence stocks zoom up to 18% today; here's why

Defence sectors stocks such as Bharat Dynamics Ltd, Cochin Shipyard Ltd, Mazagon Dock Shipbuilders Ltd, Bharat Electronics Ltd and Hindustan Aeronautics Ltd rose sharply, surging up to 18 per cent, in Tuesday's trade. The sharp upward movement came after it was reported that the Defence Ministry has given its initial approval to buy 26 Rafale fighter aircraft and three Scorpene submarines from France. And, the deal is likely to be announced during Prime Minister Narendra Modi's visit to France, which is scheduled for July 13-14.

Among individual shares, Bharat Dynamics soared 18.29 per cent to hit a one-year high price of Rs 1,278. Cochin Shipyard jumped 15.28 per cent to scale a day high of Rs 672.25, slightly below its 52-week high level of Rs 686.80. Shares of Mazagon Dock were locked at 10 per cent upper price band -- also 52-week high -- of Rs 1,588.75.

News agency ANI has reported that Indian Navy, as per the proposals, would get 22 single-seated Rafale Marine aircraft along with four trainer aircraft.

And, the three Scorpene class submarines would be acquired under the repeat clause by the Navy. The additional submarines would be built at Mazagon Dock, which drove the share price up today.

The deals are estimated to be worth over Rs 90,000 crore but the final cost would be clear only after the contract negotiations are completed which would be held after the deal is officially announced, the report further said.

Paras Defence and Space Technologies and Rossell India also recorded over 10 per cent spike, each. Also, Mishra Dhatu Nigam, Bharat Electronics and Hindustan Aeronautics were up in the range of 4 to 6 per cent.

In addition, Zen Technologies Ltd surged 14.95 per cent today to hit a one-year high of Rs 488.40. The company today announced that it has secured a significant order win in the export markets, valued at around Rs 340 crore. Zen also hinted that it "foresees more orders in near future."

Newly-listed Ideaforge Technology Ltd also staged a strong rebound from its day low price and was last seen trading 8.89 per cent higher.

Data Patterns (India) Ltd and MTAR Technologies Ltd rose by a per cent, each.

Meanwhile, Indian equity benchmarks rose today, led by gains automobiles, consumer, pharma and energy stocks. Mid- and small-cap shares were positive as Nifty Midcap 100 moved 0.88 per cent higher and small-cap soared 1.26 per cent.

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