HAL, Bharat Dynamics and other PSU defence stocks gain up to 4%: Here's why

Defence stocks including the likes of Hindustan Aeronautics Defense, Bharat Dynamics and Bharat Electronics among others will be in focus after the defence deals worth Rs 80,000 crore for Predator drones and 2 nuclear submarines was approved by Cabinet Committee on Security.

The move will boost the country's naval as well as surveillance capabilities. Reportedly, the Indian Navy as part of the deal would get two nuclear-backed attack submarines, designed to significantly improve its operational capabilities in the Indian Ocean Region. 

Amid the development, stocks like Mazagon Dock Shipbuilders, Data Patterns, Premier Explosives, Bharat Dynamics and Bharat Electronics all traded with gains of up to 3 per cent at the last count.

Reportedly, the nuclear-powered submarines would be constructed at the Ship Building Centre in Vishakhapatnam, with an estimated cost of Rs 45,000 crore. The infra major L&T will also participate significantly towards the project, reflecting the transition to indigenous defence production.

L&T shares traded with gains of over 1 per cent at Rs 3,525 while at the day's high scaled to Rs 3,553.9 per share on the BSE.