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Shares of public sector undertakings (PSU), especially in the defence and telecom sectors surged on Tuesday. (AP Photo/Andy Wong)
Shares of public sector undertakings (PSU), especially in the defence and telecom sectors surged on Tuesday. (AP Photo/Andy Wong)

PSU stocks zoom on hope of bagging orders from government

  • 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

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