PSU stocks zoom on hope of bagging orders from government1 min read . Updated: 07 Jul 2020, 01:30 PM IST
- In the last one week, Bharat Dynamics has rallied 50%, while Hindustan Aeronautics has soared 35% after the defence ministry approved purchase of weapons and equipment worth ₹38,900 crore
MUMBAI: Shares of public sector undertakings (PSU), especially in the defence and telecom sectors--Bharat Electronics, Mishra Dhatu Nigam Ltd, Hindustan Aeronautics Ltd, Bharat Earth Movers Ltd, Bharat Dynamics--surged on Tuesday on expectation of bagging orders from the government.
At 1250 pm, Bharat Electronics traded at ₹102.85, up 0.7%, Mishra Dhatu Nigam was up 3.3%, Hindustan Aeronautics rose 4.6%, and Bharat Dynamics rose 0.8%.
In the last one week, Bharat Dynamics has rallied 50%, while Hindustan Aeronautics Ltd (HAL) has soared 35% after the Ministry of Defence approved purchase of weapons and equipment worth ₹38,900 crore.
Bharat Dynamics is the only missile manufacturing company that makes surface to air missiles, anti-tank guided missiles, torpedoes and underwater weapons among others. The company's net profit more than doubled year-on-year to ₹309.72 crore in the March quarter on the back of strong operational income.
In May, the government raised foreign direct investment via automatic route to 74% from 49% as part of defence sector reforms and to boost the government's Make in India campaign