India’s stock market has remained down since Tuesday morning. Within the first hour of trade, both Sensex and Nifty50 dropped by more than 0.40%. But despite the overall market slump, one defence sector stock witnessed a significant rise. Bharat Dynamics Limited’s share price jumped 2.12%, reaching ₹1,562.
Why did this stock remain strong even in a falling market?
The primary reason behind the surge in Bharat Dynamics Limited’s stock is a fresh order received from the Indian Army. The Indian Army recently awarded the company a work order worth ₹2,461 crore. Under this contract, Bharat Dynamics will supply Anti-Tank Guided Missiles (ATGM) and Surface-to-Air Missiles (SAM) to the Army. The company disclosed this information in its exchange filing.
ALSO READ | Indian rupee hits record low against dollar despite strong GDP growth: Here’s why
However, in the interest of national security, no detailed information about the contract has been shared. The company also did not reveal the number of missiles to be manufactured. Bharat Dynamics will have to deliver the Surface-to-Air Missiles within 12 months, while the Anti-Tank Guided Missiles must be supplied within 42 months.
This defence stock has shown strong performance since last week. In the last five trading sessions, Bharat Dynamics’ share price has risen more than 4.5%. It has increased by 1% in a month. Although the stock has dropped over 20% in the last six months, it has grown 34% over the past year. Investors earned an 857% return from this stock last year.
{News Ei Samay does not provide investment advice anywhere. Investment and trading in the share market or any field involve risk. Proper study and expert advice are recommended beforehand. This news is published for educational and awareness purposes.}
