Defence shares in focus; Pipavav Defence hits 52-week high

Pipavav Defence, Bharat Electronics, Walchandnagar Ind and Astra Microwave Products were up 4%-18% on BSE.

Shares of companies in defence sector such as Pipavav Defence and Offshore Engineering, Bharat Electronics, Walchandnagar Industries and Astra Microwave Products were trading higher between 4%-18% on the BSE in otherwise subdued market.  The S&P BSE Sensex was up marginally by 0.05% at 25,862 points.

According to reports, the Ministry of Defence has initiated various policy measures to address the concerns of the industry for ease of doing business. Provisions have now been made with intent to provide greater flexibility to the vendors in offset contracts and reinstatement of services as an avenue for discharge of offset obligations and level playing field to Indian vendors in Capital acquisitions. CLICK HERE TO READ FULL REPORT.

Among the individual stocks, Pipavav Defence has surged 18% to Rs 98.40, also its 52-week high on back of heavy volumes. The trading volumes on the counter more than tripled with a combined 17.87 million shares changed hands on the BSE and NSE till 10:56 a.m.

In past one-week the stock rallied 35% from Rs 72.80 on December 17, after the Reliance Infrastructure acquired controlling stake in Pipavav Defence post closure of open offer.

According to Business Standard reports, Reliance Defence, a wholly-owned subsidiary of Reliance Infrastructure and Russian United Shipbuilding Company (USC) will build four Talwar class frigates for the Indian Navy. CLICK HERE TO READ FULL REPORT.

Astra Microwave Products has moved higher by 5% at Rs 141 after engineering giant Larsen & Toubro (L&T) has sold its entire nearly 10% stake in the company through open market.

On December 23, 2015 L&T sold 7.95 million shares representing 9.72% stake of Astra Microwave Products for about Rs 108 crore.

L&T sold 5.5 million shares of Astra Microwave Products at Rs 135.80 on the NSE and sold 2.45 million shares at Rs 135.82 on the BSE, the bulk deal data suggests. The name of the buyers not ascertained immediately.