Defence companies stocks remained in the limelight on Wednesday after reports said that India was on its way to becoming a member of the Missile Technology Control Regime (MTCR). Leading the rally were Reliance Defence and Engineering which surged over 14 per cent and Astra Micro Wave which advanced over 13 per cent intraday.
The membership of the Missile Technology Control Regime, an international anti-proliferation grouping, have agreed to admit India, diplomats said, in a win for Prime Minister Narendra Modi as he met US President Barack Obama in Washington on Tuesday. The move will help Indian companies win new contracts.
India’s membership of MTCR is expected to pave the way for increased defence trade and technology transfer between India and the US. India has shown keen interest in purchasing armed drones from the US.
US on Tuesday recognised India as a “major defence partner” and said it would work on technology sharing.
Cheering the news, stocks of defence related companies, including Bharat Electronics , Astra Micro Wave Products Ltd, Reliance Defence and Engineering Ltd and Walchandnagar Industries Ltd ended up 6.25 per cent, 5.60 per cent, 10.32 per cent and 10.86 per cent.
“There are defence contracts worth $150 billion in the pipeline and there is an optimism that these contracts will be announced soon,” said analyst Santosh Yellapu of Angel Broking.
With agency inputs