Defence stocks: BDL, BEL, Data Patterns shares gain up to 9% today; here’s the trigger

Defence stocks such as Data Patterns (India), Bharat Dynamics (BDL) and others climbed up to 9% in Friday’s trade, following reports that India and France may co-produce Rafale fighter jets.

Taking the lead, Data Patterns (India) witnessed a sharp rally, gaining over 9% to touch the day's high of Rs 3190, above its previous close of Rs 2,909.90. At last check on the BSE, BDL shares climbed 3.14% to Rs 1,314.55.

Meanwhile, Bharat Electronics (BEL) saw a steady 1.17% uptick to Rs 440.65, and Paras Defence and Space Technologies' stock was 1.94% higher at Rs 642.50.

In his three-day visit to India, Macron confirmed that Paris and New Delhi are stepping into an era of defence cooperation. According to a Reuters report, French President Emmanuel Macron said this new era involvesplans to jointly manufacture helicopters and the Rafale jets on Indian soil. 

France also hopes to sell additional submarines to India, Macron added.

Optimism is also driven by a clearance from India's Defence Acquisition Council, which greenlit the procurement of 114 Rafale jets in a deal valued at a Rs 3.25 lakh crore.

"On Rafale, what we want to do is expand. India confirmed a few days ago its willingness to command a new bunch of Rafales... 114... and to co-produce in India," the French President told reporters, as quoted by Reuters.

The business component is part of the dialogue between the company (Dassault Aviation) and your government,” Macron said in response to a question by India Today, adding, “And I mean, I don't see how people can criticise because it makes your country stronger, it increases the strategic relationship between us, and it creates more jobs here.”

Meanwhile, India has already successfully purchased and inducted 36 Rafale jets to boost its air force capabilities.