This Defence Ministry Decision May Be Powering Both HAL And Cochin Shipyard Shares Today

Shares of Hindustan Aeronautics (HAL) and Cochin Shipyard were skyrocketing on Thursday after the Defence Ministry greenlit a massive purchase order of aircraft and helicopters.

What Happened: The Defence Acquisitions Council (DAC) has given its nod for the acquisition of 97 Tejas Aircraft and 156 Prachanda Helicopters, CNBC Awaaz reported, citing sources.

HAL is the domestic supplier for both Tejas and Prachanda aircraft. The Ministry has reportedly sanctioned ₹1.40 lakh crore for the procurement of one aircraft carrier.

This development aligns with a crucial meeting scheduled to be chaired by Defence Minister Rajnath Singh. The ambitious project, estimated at around ₹55,000 crore, aims to reinforce the country’s existing fleet of 83 Tejas jets.

See Also: Despite Alipay Exit, Citi Sees 25% Upside For Zomato In Bullish Prediction

In addition to the aircraft, the new carrier, capable of accommodating at least 28 fighter jets and helicopters with a displacement of 45,000 tons of water, is set to deploy the French Rafale jets, as per sources cited by Bloomberg. India’s first indigenous carrier, INS Vikrant, commenced operations last year, constructed by Cochin Shipyard, complementing the existing Russian-made aircraft carrier.

The report further outlines India’s strategic vision to possess 160 warships by 2030 and 175 by 2035, incurring an estimated cost of ₹2 lakh crore. With over 60 vessels of the Indian Navy under construction, India is intensifying warship patrols amid escalating concerns over China’s expanding naval capabilities.

Price Action: Shares of HAL and Cochin Shipyard shot up during the late hours of trading on Thursday, trading 2.93% higher at ₹2,412.10 and 3.29% higher at ₹1,202.40, respectively.

Read Next: If You Invested ₹15,000 In Tata Technologies IPO, Here’s How Much You’d Have Today

Don't miss a beat on the share market. Get real-time updates on top stock movers and trading ideas on Benzinga India Telegram channel.

Posted In: EquitiesGovernmentMarketsMoversTrading IdeasCochin ShipyardHAL