On Saturday, the Defence Ministry announced that to give further push to the Atmanirbhar Bharat campaign, it has proposed an import ban on 101 military items to boost indigenisation of defence production.
This embargo on imports would be progressively implemented between 2020 and 2024. It is estimated that contracts worth almost Rs 4 lakh crore will be placed upon the domestic industry within the next 6 to 7 years.
The Ministry has also bifurcated the capital procurement budget for 2020-21 between domestic and foreign capital procurement routes. A separate budget head has been created with an outlay of nearly Rs 52,000 crore for domestic capital procurement in the current financial year.
This news has brought defence stocks into focus and we see the entire sector rallying today.
The stocks to benefit are all up in the green today - Bharat Dynamics, L&T Tech, HAL, Garden Reach, Astra Micro, BEML, Mishra Dhatu, Cochin Shipyard, Sika Interplant, Bharat Electronics Ltd, Nelco, Axiscades, Bharat Forge, Premier Explosives.