Defence stocks jump 5% on potential India-Israel deal
Defence stocks rallied on Thursday amid reports of a potential defence agreement between India and Israel, as investors positioned for fresh orders and technology collaborations across missile defence and advanced weapons systems. Shares of Hindustan Aeronautics rose 0.3%, while Bharat Electronics gained 1.2%. Data Patterns (India) climbed 5%, Astra Microwave Products advanced 3%, and Bharat Dynamics added 2% in trade.
The move follows a ToI report that Prime Minister Narendra Modi, who landed in Tel Aviv on Wednesday, is expected to oversee the signing of a defence memorandum of understanding aimed at deepening security ties between the two countries.
The proposed cooperation is likely to focus on the transfer of advanced technologies rather than outright weapons sales. The report said the agreement could cover both defensive systems and collaboration on offensive capabilities, with Israeli firms remaining tight-lipped about specifics.
TOI reported that potential areas of focus in defensive systems include Israel Aerospace Industries' Arrow missile defence system, Rafael's David's Sling, the Iron Dome short-range air defence system, and the Iron Beam directed energy system developed by Rafael and Elbit. The emphasis, as per the report, is on technology transfer for advanced systems that Israel has not previously offered to other countries.
The possibility of deeper technology collaboration has sparked interest in Indian defence electronics and missile players, which are seen as potential beneficiaries under the Make in India framework if joint development and local manufacturing are prioritised.
India-Israel ties have strengthened in recent years across defence, scientific research, cybersecurity and innovation. Defence cooperation has emerged as a central pillar of the relationship, with Israel supplying a range of platforms and weapon systems to India.
The two countries signed an important agreement on defence cooperation last year during the visit of India’s defence secretary to Israel, laying the groundwork for closer institutional engagement.
Also read: NSE is said to invite banks to pitch for nearly Rs 23,000 crore IPO
The latest buzz also comes alongside broader economic engagement. Earlier this week, India and Israel began the first round of negotiations for a proposed Free Trade Agreement in New Delhi, with talks scheduled from February 23 to 26.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
The move follows a ToI report that Prime Minister Narendra Modi, who landed in Tel Aviv on Wednesday, is expected to oversee the signing of a defence memorandum of understanding aimed at deepening security ties between the two countries.
The proposed cooperation is likely to focus on the transfer of advanced technologies rather than outright weapons sales. The report said the agreement could cover both defensive systems and collaboration on offensive capabilities, with Israeli firms remaining tight-lipped about specifics.
TOI reported that potential areas of focus in defensive systems include Israel Aerospace Industries' Arrow missile defence system, Rafael's David's Sling, the Iron Dome short-range air defence system, and the Iron Beam directed energy system developed by Rafael and Elbit. The emphasis, as per the report, is on technology transfer for advanced systems that Israel has not previously offered to other countries.
The possibility of deeper technology collaboration has sparked interest in Indian defence electronics and missile players, which are seen as potential beneficiaries under the Make in India framework if joint development and local manufacturing are prioritised.
India-Israel ties have strengthened in recent years across defence, scientific research, cybersecurity and innovation. Defence cooperation has emerged as a central pillar of the relationship, with Israel supplying a range of platforms and weapon systems to India.
The two countries signed an important agreement on defence cooperation last year during the visit of India’s defence secretary to Israel, laying the groundwork for closer institutional engagement.
Also read: NSE is said to invite banks to pitch for nearly Rs 23,000 crore IPO
The latest buzz also comes alongside broader economic engagement. Earlier this week, India and Israel began the first round of negotiations for a proposed Free Trade Agreement in New Delhi, with talks scheduled from February 23 to 26.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
Next Story