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Defense stocks saw a sharp reversal on Wednesday as investor eye foreign direct investment (FDI) promoted policy in defense sector
Defense stock
Shares of defense -related companies witnessed a strong rally on Wednesday, leading the charge by Garden Reach Shipbuilders and Engineers (GRSE), which increased by 14.9% to Rs 1,404.50 on BSE. The boom followed the comments of the Defense Secretary, who said that comfortable foreign direct investment (FDI) policies and a streamlined industrial licensing process would promote the increase in defense sector.
Defense sector shares posted strong benefits, with the data pattern rose by 14.4% to Rs 1,631, Bharat climbing dynamics to Rs 9.1% to Rs 1,102.25, and Zen Technologies increased from 10% to Rs 1,068.65. Other notable players, including DCX system and Mazagon Dock Shipbuilders, also recorded double digits during intra-day trading.
On February 17, the remarks of Defense Secretary Rajesh Kumar Singh extended the view of the development of the region, who said that the Indian defense industry is on the verge of “massive expansion”. He said that comfortable foreign direct investment (FDI) policies and well -organized industrial license procedures would be the leading drivers of development in the domestic defense industry.
Singh further emphasized the importance of public-private participation in India’s position, which is a center for advanced manufacturing in the region. Citing the budget data, he revealed that a defense budget of Rs 6.21 lakh crore in 2025-26 will increase 9.5% to Rs 6.81 lakh crore.
The increase in defense shares was oppressed by oppressed on the increase in foreign investment in domestic defense companies, as investors took advantage of recent price reforms in the sector.
In December, Elara Securities upgraded several defense stocks including HAL, BDL, India Electronics and Garden Reach Shipbuilders, which fears a strong order flow. The region has attracted the interest of important investors in recent years, inspired by the government’s push for self -sufficiency under the self -sufficient India initiative. While defense stocks had given impressive returns of up to 400%, inspired by import restrictions, FDIs had increased, and focused on defense exports, recent benefits led to a sharp improvement in evaluation.
