NEW DELHI — Indian defense stocks rallied sharply on Monday, climbing over 9% after the government signed a ₹63,000 crore ($7.5 billion) deal with France for 26 Rafale Marine fighter jets for the Indian Navy.
The Nifty Defense Index rose 4.5%, marking its biggest intra-day gain since April 15. Seventeen of its 18 listed companies closed higher, led by strong performances from Paras Defence and Space Technologies, Garden Reach Shipbuilders & Engineers, and Data Patterns (India).
Paras Defence surged 9.27%, closing at ₹1,142 on the National Stock Exchange (NSE), further buoyed by news that its board will meet on April 30 to consider a stock split, approve FY25 financials, and recommend a dividend.
Garden Reach Shipbuilders also gained 8.11%, while Hindustan Aeronautics Limited (HAL) rose over 5.5%. Mazagon Dock Shipbuilders and Cochin Shipyard added 4.77% and 6.1%, respectively. Bharat Electronics Limited (BEL) advanced 3.28%.
The landmark deal with France’s Dassault Aviation includes the purchase of 26 Rafale Marine jets, along with weapons, simulators, spares, training, and logistics support. Deliveries are expected within 37 to 65 months, with completion projected by 2030-31.
The agreement also features an offset clause for indigenous manufacturing of components, supporting India’s Atmanirbhar Bharat (self-reliant India) initiative.
The new Rafale jets will be deployed on India’s aircraft carriers, INS Vikrant and INS Vikramaditya, significantly enhancing the Navy’s operational capabilities in the Indian Ocean. Built to withstand the harsh conditions of carrier operations, the Rafale Marine is designed for durability in highly corrosive maritime environments. (Source: IANS)
