There is a 6.5 times jump in volumes on the counter of HAL. The stock price surged over 5.5% to Rs.772.70 and in such a despondent looking market, figures among the top five gainers on the BSE.
The stock price has reacted to unconfirmed media reports stating that the Indian Air Force (IAF) is likely to order 70 basic trainers manufactured by HAL.
These trainers, known as Hindustan Turbo Trainer (HTT-40) are currently undergoing a string of elaborate tests at HAL to demonstrate that it is safe for rookie pilots and meets IAF’s exacting standards for trainer planes. Test pilots have wrapped up intensive flight tests but some brutal trials are yet to be conducted.
The order is expected to happen by the end of the year. After successful testing, and once the order comes in by end of the year, the company will begin production by early 2021 and it will take HAL around four years to deliver the required 70 HTTs.