Defence stocks gain a day after MoD bans 108 items import – BEL, HAL soar most in the list

A day after the Ministry of Defence announced a positive indigenisation list of 108 items of defence equipment, which is now mandatorily procured through indigenous sources, the shares of defence equipment companies soar on the BSE intraday during Tuesday’s trade. 

On an individual basis, Bharat Electronics Limited (BEL) jumped most over five and a half per cent on the BSE intraday, followed by Hindustan Aeronautics Limited and Garden Reach Shipbuilders each soared by around five per cent on BSE Intraday. 

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While Bharat Dynamics and Astra Microwave Products each grew by four and a half per cent on BSE intraday. BEML surged by near 2 per cent, Bharat Forge, Mishra Dhatu Nigam, and Mazagon Dock Shipbuilders each advanced above one per cent intraday, however ended negative at the close. 

In comparison, the benchmark S&P BSE Sensex was trading above 52000 levels, up around 0.3 per cent during early trade till early afternoon, however, even the benchmark indices ended in red today. 

The MoD’s release stated, "The list lays special focus on weapons/systems which are currently under development /trials (in India) and are likely to translate into firm orders in the future. Like the first list, import substitution of ammunition, which is a recurring requirement, has been given special focus.” 

From this December end, the Indian military will rely upon exclusively on indigenous vendors for defence equipment, including land-based, single-engine, light he­licopters, next-generation corve­ttes, mission systems for airborne early warning and control system, helicopter launched anti-tank guided missile, warship-grade steel and armoured or mine-protected infantry vehicles, the statement added. 

Of 108 items mentioned in the list includes 49 will be banned for import after December 2021; 21 of them can’t be imported after 2022-end; 17 will be banned for import after December 2023; 13 after December 2024; and eight items will have to be procured indigenously after December 2025. 

This list supplements an earlier import embargo on 101 defence items announced last August.