DEFENSE AERONAUTICAL STOCK RALLIES AMID REPORTS OF IAF PROPOSAL TO BUY RAFALE JETS

Stock prices of

have rallied in the recent trading sessions despite a muted trend in the broader Indian stock market. This uptrend comes amid reports that the Ministry of Defence has received and begun discussions on a proposal from the Indian Air Force to acquire 114 ‘Made in India’ Rafale fighter jets. The deal, to be executed by French aerospace major Dassault Aviation in collaboration with Indian firms like HAL is estimated to be worth over Rs 2 lakh crore. Further, HAL shares were in the spotlight after reports indicated the company has received delivery of the GE 404 engine, with the fourth engine expected by September-end. The defence PSU is also slated to supply the first two Tejas MK1A aircraft by October, marking the commencement of revenue recognition from its sizeable order backlog of 83 Tejas MK1A jets.