Defence shares in focus; Walchandnagar Industries up over 10%

Astra Microwave, Reliance Defence and Nelco were up more than 5% each as compared to 0.19% rise in Sensex.

Shares of companies engaged in defence related sector such as Walchandnagar Industries, Astra Microwave Products, Reliance Defence and Engineering, Nelco and Bharat Electronics have rallied by up to 16% on the BSE in early morning trade in an otherwise subdued market.

Walchandnagar Industries surged 16% to Rs 159 on the BSE, on back of over 10-fold jump in trading volumes. A combined 1.92 million shares changed hands on the BSE and NSE in first 25 minutes of trading as compared to an average sub one lakh shares that were traded daily in past two weeks.

Astra Microwave Products (up 9% at Rs 134), Reliance Defence and Engineering (8% at Rs 64) and Nelco (6% at Rs 105) were up more than 5% each as compared to 0.19% rise in the S&P BSE Sensex at 09:28 AM.

According to media reports, the United States (US), on June 7, recognised India as a “major defence partner” which means that for defence related trade and technology transfer the country would now be treated at par with America’s closest allies. CLICK HERE TO READ FULL REPORT.