Defence Stocks Surge Up To 5 Percent After Ministry Releases Second Negative Import List

Indices are firm in line with global cues with Nifty hitting a fresh high of 15660.75 while the broader markets are trading lower at the time of writing this report, with Nifty Mid-cap 100 down by 0.1 percent.

Sectorally, slowly and gradually weakness is seen across sectors, with metals losing the most, followed by realty and pharma space.

Nonetheless, speaking of the sector which has seen action owing to sector specific news is the defence pack. On Monday, the defence ministry came up with the second negative import list now christened as 'positive indigenisation list' comprising 108 items which can now be bought from only indigenous sources. The policy initiative will be implemented from December 2021 to December 2025.

So, the total number of items now included in the category total to 209. "The second list lays special focus on weapons and systems which are currently under development/trials 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," a Ministry statement said.

With the statement, as the companies in the sector shall be able to up their capacities into various defence equipment manufacturing and there is scope " for 'start-ups' as also Micro, Small and Medium Enterprises (MSMEs)", as the defence ministry statement highlighted there is seen traction in defence companies in India.

Individually stock of BEL or Bharat Electronics is trading close to its 52-week high price of Rs. 160 per share.

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