Defence stocks in India rebounded notably on September 20, with key players like Mazagon Dock and Garden Reach Shipbuilders climbing up to 10%. Cochin Shipyard, in particular, surged 10% after being included in the FTSE All World index, anticipating $30 million in inflows.
On Dalal Street, defence stocks, once favoured, demonstrated robust gains. By mid-morning, shares of Paras Defence and Bharat Electronics had risen by approximately two percent, while Hindustan Aeronautics saw a 2.5% increase. The positive movement was reflective of renewed investor interest.
Bharat Dynamics experienced a significant uptick, jumping four percent to Rs 1,166. Concurrently, Mazagon Dock and Garden Reach Shipbuilders enjoyed an 8% rise, reaching Rs 4,364 per share, showing strong market momentum for these defence entities.
Cochin Shipyard stood out with a 10% increase in its share price, bolstered by the FTSE index inclusion. Additionally, the stock is set to trade ex-dividend starting September 23, marking the last opportunity for investors to buy shares and receive the forthcoming dividend payout.
Recently, PSU defence counters have undergone sharp profit-taking after months of significant gains. Investors have been actively securing profits due to the perceived imbalance between high valuations and the associated risks, impacting the overall sentiment in the defence stock sector.
