Railway Stock RITES, Defence Stock Garden Reach Among Firms Caught In Hard Place Amid Bangladesh Chaos

The escalating violence in Bangladesh has put its business relations with India into flux, with public sector firms taking a hit.

What Happened: Former Bangladeshi Prime Minister Sheikh Hasina made her first visit to India in June, since the re-election of the National Democratic Alliance government earlier in the month. During the visit, both nations vowed to enhance their cooperation in connectivity, infrastructure and energy, according to a joint statement.

"As part of our sub-regional connectivity initiatives, India will extend transit facilities for movement of Bangladesh goods to Nepal and Bhutan through the railway network," the statement added.

They vowed to modernise the Bangladesh Armed Forces by strengthening their defence capabilities. "We will continue to work closely with Bangladesh for our multifaceted military engagements of exercises, training and capability development," India said.

See Also: Markets Make Strong Recovery In Early Trade After Monday’s Bloodbath

But all those plans have now reached an uncertainty following the resignation of Prime Minister Sheikh Hasina Wazed on Monday.

In July, Garden Reach Shipbuilders & Engineers (GRSE) secured a contract to construct an advanced ocean-going tug for the South Asian country. This involved the design, construction, and delivery of the ocean-going tug vessel.

The tug's main functions involve towing ships at sea both alongside and astern, assisting with berthing and casting off, and aiding in turning through pushing and pulling. The vessel will also be equipped to carry out rescue and salvage operations at sea. 

Earlier in May, RITES announced a contract with Bangladesh Railways to supply 200 Broad Gauge passenger coaches. The deal was valued at $111.26 million.

RITES emphasised that this contract aligns with the “Make in India, for the World” vision, showcasing the export of indigenously developed railway rolling stock.

Price Action: Shares of GRSE were down 3.58% at ₹2,131.25 and RITES gained 0.50% to trade at ₹690.80 on Tuesday morning.

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