Defence stocks gain as PM Modi launches Mission Sudarshan Chakra

In a significant development for India's defence sector, Prime Minister Narendra Modi announced the launch of "Mission Sudarshan Chakra" during his Independence Day address. The initiative, aimed at neutralising enemy threats and enhancing India's offensive capabilities, led to a rally in defence stocks, with notable gains across several companies. During trading, the Nifty India Defence index rose 0.83% to 7,869.75 levels. Shares of Dynamatic Technologies and Data Patterns (India) Ltd rose 3.53% and 2.86%, respectively.  Stocks of Hindustan Aeronautics (HAL), Bharat Electronics (BEL), Bharat Dynamics and Cochin Shipyard shares too gained in Monday's trade. 

The announcement comes amid security challenges from Pakistan and China, and underscores India's commitment to reducing reliance on foreign technologies.

Modi stated, "The mission underscores India's commitment to strategic autonomy, ensuring rapid, precise and powerful responses to any threat." He also highlighted the mission's inspiration from India's mythological heritage. "Sudarshan Chakra", experts said, could be on the lines of Israel's Iron Dome all-weather air-defence system, a very effective missile shield.

Beyond defence systems, Modi emphasised indigenous innovation, urging local scientists and youth to develop jet engines domestically. "PM Modi said that just like how India made vaccines during COVID and UPI for digital payments, 'we should build our own jet engines too' and urged Indian scientists and youth to take it up as a direct challenge."

The emphasis on self-reliance aligns with ongoing efforts to finalise a joint jet engine production deal between Hindustan Aeronautics Limited and US-based GE Aerospace, which faced delays.