Defence Stocks Surge Late As Rajnath Singh Vows To More Than Double Exports To ₹50,000 Cr

Defence stocks saw a late upswing on Thursday as Rajnath Singh took charge as defence minister for a second term and laid out plans to ramp up defence exports in the fiscal year.

What Happened: Singh was formally welcomed as the returning defence minister at South Block, New Delhi on Thursday afternoon.

Singh emphasised a renewed focus on self-reliance in defence manufacturing and modernising the armed forces. He said India had clocked a record ₹21,083 crore in defence exports in FY24 and set an ambitious target of over ₹50,000 crore within the next five years.

Accompanied by high-ranking officials, including the Chief of Defence Staff General Anil Chauhan and the chiefs of the Army, Navy and Air Force, Singh outlined his roadmap for a stronger, self-reliant and prosperous India.

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Singh also underscored the importance of welfare for both serving and retired soldiers and announced regular review meetings to expedite key defence initiatives. His first visit in the new term will be to the Eastern Naval Command in Visakhapatnam, reflecting the strategic importance of the Indian Ocean Region.

Policy Relief: The bounce back in defence stocks comes after defence-related stocks saw massive corrections on June 4, when Prime Minister Narendra Modi’s Bharatiya Janata Party failed to secure a single-party majority in Parliament, leading to fears of a break in policy continuity.

Price Action: Shares of Hindustan Aeronautics climbed 4.14% in late afternoon trade on Thursday, while Mazagon Dock Shipbuilders‘ stock jumped 5.88% to ₹3,388. Bharat Electronics gained 2.43% to trade at ₹297.55 and Cochin Shipyard shot up 4.97% to ₹1,997.5.

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