Narendra Modi’s maiden visit to Israel has brought positive sentiments among the investors, as the Prime Minister has clocked and locked deals and has firmed up economic ties with the technologically advanced and innovation-driven nation Israel. The shares of several firms in the business of technology, defence and innovation were in focus today after his Israeli counterpart Benjamin Netanyahu announced the establishment of a $40 million innovation fund to promote technological cooperation between India and Israel.
The stocks which have gained traction today on the back of cross-border economic ties with Israel include blue-chips as well as lesser known companies. The heavy equipment maker BEML is trading up 3.95%at Rs 1,574, while India’s one of the leading domestic automobile manufacturer Mahindra & Mahindra is trading up 2.16% at Rs 1,384.45. The effect of price cuts after the recent implementation of GST may also be a factor aiding auto stocks today.
Other stocks buoyant in trade today on the back of Narendra Modi’s Israel visit include Bharat Electronics (up 2.36% at Rs 167.25), Ashok Leyland (up 1.96% at Rs 101.3), Bharat Forge (up up 1.28% at Rs 1,112.55), Tata Motors (up 1.25% at Rs 432.25), Reliance Defence and Engineering (up 1.15% at Rs 61.45), L&T (up 0.52% at Rs 1,692.1), Astra Microwave Products (up 0.46 at Rs 142.5%) and Walchandnagar Industries (up 0.45% at Rs 165.6).
Narendra Modi said in Israel that it was a “singular honour” to be the first sitting prime minister of India to visit the country. “Alongside building a partnership for shared economic prosperity, we are also cooperating to secure our societies against common threats such as terrorism,” he said. “A progressive partnership in all these areas will shape the scope of my conversation with the Prime Minister, my friend, Netanyahu,” Narendra Modi added.
India is a major purchaser of Israeli arms. This year, Israel’s state-owned Israel Aerospace Industries announced over $2 billion in contracts to provide air and missile-defense systems to India.
The two sides are expected to announce strategic partnerships in areas including water, agriculture and space technology during Modi’s visit. But it is the defence relationship that is most advanced — India is now Israel’s biggest arms market, buying weapons at an average of $1 billion each year. Eli Alfassi, executive vice-president of marketing at state-owned Israel Aerospace Industries (IAI), the country’s biggest defence firm, said it was supplying India with drones, radar, communication systems and cybersecurity, Reuters said in a report.
On Day 2 of his tour, PM Narendra Modi will attend a series of meetings. India and Israel are expected to sign a number of deals.