HAL, BEL Shares In Focus: Most defence stocks give up gains after initial spurt

“All these procurements will be made from Indian vendors under Buy (Indian-Indigenously Designed Developed and Manufactured)/Buy (Indian) category which will give substantial boost to the Indian defence Industry towards achieving the goal of ‘Aatmanirbhar Bharat’,” the government said in a press release.

On the other hand, shares of BEL had gained nearly 7 percent in early trade after it had received an order worth Rs 2,118.57 cror from Cochin Shipyard for the supply of various equipment for six numbers of Next Generation Missile Vessels (NGMV), class of anti-surface warfare corvettes, for the Indian Navy.

The supply order consists of sensors, weapon equipment, fire control systems and communication equipment.

“This project will have participation of Indian electronics and associated industries, including MSMEs, which are sub-vendors of BEL,” the company said in a notification to exchanges.

Defence stocks have shown strong upward momentum in the recent past as the ‘Make in India’ initiative of the government, along with rising exports and hefty order books, has turned around the sentiment for the industry though rich valuations remain a concern for investors.

Shares of other defence stocks like Garden Reach Shipbuilders, Mazagon Dock, Bharat Dynamics are also trading off their sessions' high.