Shares of Garden Reach Shipbuilders Ltd. have surged as much as 20% on Wednesday, March 19, taking with it other defence stocks as well up to their day’s high. The stock is the top gainer on the Nifty 500 index.Along with Garden Reach, shares of Mazagon Dock (up 8%), Bharat Dynamics (up 8%), Cochin Shipyard (up 7.5%) are also trading with healthy gains.
Nifty 50 constituent Bharat Electronics (BEL) is also trading with gains of up to 2%.
The move comes after German lawmakers passed a spending package on Tuesday, taking a big step towards unlocking billions of Euros in Debt finance for defence and infrastructure spending.
The law makers also intend to release the defence spending from the so-called debt ceiling. Defence spending, which is in excess of 1% of Germany’s GDP will be released from constitutional borrowing restrictions.Germany’s chancellor Friedrich Merz said that the move to unlock billions of euros in military spending should be seen as a “first great step” toward the creation of a broad European defense community including non-EU nations like the UK and Norway.
Nifty 50 constituent Bharat Electronics (BEL) is also trading with gains of up to 2%.
The move comes after German lawmakers passed a spending package on Tuesday, taking a big step towards unlocking billions of Euros in Debt finance for defence and infrastructure spending.
The law makers also intend to release the defence spending from the so-called debt ceiling. Defence spending, which is in excess of 1% of Germany’s GDP will be released from constitutional borrowing restrictions.Germany’s chancellor Friedrich Merz said that the move to unlock billions of euros in military spending should be seen as a “first great step” toward the creation of a broad European defense community including non-EU nations like the UK and Norway.
European countries are embarking on a “rearm Europe” program to ensure protection from any potential Russian aggression in the region.
Indian defence exports surged to ₹21,000 crore in financial year 2024, which was a growth of 32.5% over the past year. India currently exports defence equipment to over 100 countries, with the top three destinations being the US, France and Armenia, according to a PIB release dated October 2024.
Most of these Defence stocks are currently recovering from their 2024 lows, having corrected between 30% to 60% from their all-time high levels.
First Published: Mar 19, 2025 12:58 pm IS
