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Market Update

Technology Transfer Push Drives Defense Stocks Higher in India

Author: Mukesh Buch
Last Update: 7:26 AM ET February 18 2015

6:00 PM Mumbai Defense sector stocks led the gainers after Prime Minister Modi urged international contractors to transfer technologies to win future bids. Crompton Greaves secured a contract worth ₹119 crore from NTPC. Hero MotoCorp founders lowered stake by 3.5%.

In a broad rally market indexes advanced and military contractors were in focus after Prime Minister Narendra Modi highlighted growth potential in the sector.

Speaking at the Aero India show in Bengaluru, Modi stressed that India is not looking to be the number in arms imports in the world.

Modi also nudged international contractors to go beyond systems assembly at local plants and accelerate technology transfer to win nearly $25 billion of annual contracts.

Defense contractors, Bharat Electronics, BEML, Astra Microwave and Pipavav Defence advanced.

Pipavav Defence soared 13% on speculation that Mahindra & Mahindra may approach the company to acquire as much as 25% in the company followed by a tender offer for the rest of the stake.

Indian rupee rose 18 paisa to 62.34 against one dollar.

The Sensex Index advanced 184.38 or 0.6% to close at 29,320.26. The CNX Nifty rose 59.75 or 0.7% to 8,869.10.

Gainers & Losers

Crompton Greaves Limited rose 1.7% to ₹174.60 after the industrial equipment maker won a contract worth ₹119 crore from NTPC.

Dynamatic Technologies Limited climbed 6.9% to ₹2,613.50 after the automotive component maker secured a contract from Airbus to manufacture key wing components for A330 wide body family aircraft.

Godrej Properties Limited rose 0.4% to ₹297.10 after the group plans to buy a small-sized e-commerce company through its retail arm Nature''s Basket.

Hero MotoCorp Limited declined 5.1% to ₹2,663.45 after the company promoters sold 3.5% stake of 71 lakh or 7.1 million shares between ₹2,664 and ₹2,718 a share. After the transaction the founders still control 36.4% stake in the company.

HCL Infosystems Limited jumped 3.5% to ₹52.60 after the company said that Nokia signed three-year contract with the company to sell its mobile phones.

Jyoti Structures Limited surged 8.1% to ₹35.35 after the construction company secured a contract worth ₹582 crore for transmission line projects.

NTPC Limited advanced 1.3% to ₹145.95 after the electricity distributor plans to set up 10,000 megawatt of solar power capacity and invest about $10 billion in the next five years.

Lupin Limited gained 1.6% to ₹1,685 after the pharmaceutical product maker signed an agreement with Poland-based Celon Pharma to develop the generic version of GlaxoSmithKline''s Advair Diskus.

Sources: Data collected by 123jump.com and Ticker.com from company press releases, filings and corporate websites. Market data: BATS Exchange. Inc