Defence stocks like Garden Reach Shipbuilders, Mazagon Dock Shipbuilders and Cochin Shipyard are trading 5 to 7 percent higher on July 17.
This is in reaction to the the latest development on July 15 that the Indian government announced the selection of the naval variant of Rafale jets to equip the Indian Navy with the latest-generation fighter, Dassault Aviation, a French aerospace major and maker of the aircraft.
"The Indian Government announced the selection of the Navy Rafale to equip the Indian Navy with a latest-generation fighter," Dassault Aviation said in a statement. It said the decision came after a "successful trial campaign held in India, during which the Navy Rafale demonstrated that it fully met the Indian Navy's operational requirements and was perfectly suited to the specificities of its aircraft carrier".
"The Indian Navy's 26 Rafale will eventually join the 36 Rafale already in service, which are giving full satisfaction to the Indian Air Force, making India the first country to make the same military choice as France by operating both versions of the aircraft to help consolidate its superiority in the air and on the seas and guarantee its sovereignty".
PM Modi began a two-day visit to Paris on July 13 to deepen ties with New Delhi's oldest strategic partner in the West, with a slew of high-profile defence deals expected and a new joint plan to ensure stability in the Indo-Pacific.
The deal will cover the purchase of 26 Dassault Aviation Rafale fighter jets, including four trainers, and three Scorpene class submarines to be built by India's Mazagon Dock Shipbuilders and France's Naval Group, two sources familiar with the details told Reuters.
At 11:30 am on July 17, the shares of Mazagon Dock Shipbuilders, Garden Reach Shipbuilders and Cochin Shipyard are trading higher by 5 percent, 5 percent 7 percent respectively. All defence stocks, particularly Mazagon Dock Shipbuilders has had a stellar rally with 116 percent returns since the start of CY2023.
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