Shares of major defence companies including Bharat Dynamics, Hindustan Aeronautics, Bharat Electronics are trading with gains in Friday's session as the country's defence minister Rajnath Singh is on a 4-day visit to the US.

COMMERCIAL BREAK
SCROLL TO CONTINUE READING

“The visit comes in the backdrop of the growing momentum in India-US relations and defence engagements at multiple levels. The visit is expected to further deepen and broaden the India-US Comprehensive Global Strategic Partnership," said the defence ministry.

At the day's high, these stocks gained up to 2 per cent, while the Nifty index traded with minor gains of 0.06 per cent at 24,826.8.

Rajnath Singh is on an official visit to the US from August 23 to 26 at the invitation of the US Secretary of Defence Lloyd Austin. He arrived in Washington, on Thursday, stated the reports. Singh will chair a meeting the US defence industry for discussion current as well as future defence tie-ups.

"India and the US are natural allies, we have old ties. Even destiny wants India-US relations to be strong," he said addressing the Indian community in Washington on Thursday.

Rajnath Singh will also chair a meeting with the US defence industry to discuss ongoing and future defence collaborations.

Singh will likely discuss about the GE F 404 engine that is deployed in Tejas MK-1 as any delay in its supply is a big threat and concern for Hindustan Aeronautics. 

Defence and many railway stocks have good growth prospects but the valuations in most cases had run ahead of fundamentals, warranting a correction which has been happening recently, noted Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.