Indian defense stocks are surging today: Here we decode why
What's the story
Indian defense stocks have witnessed a significant surge in intraday trade today. The spike is mainly due to reports of the Indian Army's imminent acquisition of a new surface-to-air missile system worth ₹30,000 crore. The Nifty India Defence index rose by over 1% during the session, with companies such as Dynamatic Technologies and Data Patterns (India) witnessing gains between 2-7%.
Market response
Defense stocks have surged up to 80% in 1 month
Defense stocks in India have been on an uptrend following Operation Sindoor against Pakistan. Firms such as Garden Reach Shipbuilders, Cochin Shipyard, BEML, Zen Technologies, Mishra Dhatu Nigam and Data Patterns have witnessed a surge of 25-80% in the last month. Meanwhile, Solar Industries, Mazagon Dock Shipbuilders, HAL, and Paras Defence have surged 10-25% in the same period.
Placement
Where will QRSAM be deployed?
The proposed acquisition involves the India-made Quick Reaction Surface to Air Missile system (QRSAM) for the Army Air Defence. The new systems will be deployed along both the western and northern borders of our country. The Defence Ministry is likely to approve this proposal soon, further strengthening India's defense capabilities.
Specifications
A look at the QRSAM system
The new missile system, developed by the Defence Research and Development Organisation (DRDO), is highly mobile. It can search and track targets on the move and fire at short halts. With a range of around 30km, it will complement the existing systems in the forces such as MRSAM and Akash in short to medium ranges.