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Bharat Forge shares declined over 4% in early trade on Thursday, a day after the Centre announced that it has inked deals worth Rs 6,900 crore
Defence Stocks News Today
Bharat Forge Share Price: The shares of Bharat Forge declined over 4 per cent in early trade on Thursday, a day after the Centre announced that it has inked deals worth Rs 6,900 crore with Bharat Forge and Tata Advanced Systems.
Shares of Bharat Forge declined 4.48 per cent in early trade to quote at Rs 1,162 per share on the NSE. Later, it trimmed some of its losses to quote at Rs 1,162, down 1.77 per cent.
The Ministry of Defence (MoD) has signed these contracts for the procurement of 155mm/52 Calibre Advanced Towed Artillery Gun Systems (ATAGS) and High Mobility Vehicle 6×6 Gun Towing Vehicles with Bharat Forge Limited and Tata Advanced Systems Limited, respectively.
MoD, with these pacts, aims to replace the older and smaller calibre guns with the 155 mm/52 Calibre ATAGS to enhance the artillery capabilities of the Indian Army. This will also enhance the operational readiness and boost the Army’s firepower by enabling precise and long-range strikes.
The stock’s underperformance occurred against a mixed backdrop for defense stocks, with the Nifty India Defence Index managing modest 0.5 per cent gains despite 12 of its 16 constituents closing in negative territory.
Sector peers showed divergent trends, with Hindustan Aeronautics (HAL) gaining 3 per cent while MTAR Technologies fell 3.5 per cent. Analysts suggest Bharat Forge’s early weakness may reflect profit-taking after its strong 13 per cent monthly gain, which significantly outpaced the Nifty’s 4 per cent rise.
However, the stock’s longer-term performance remains under pressure, having fallen 26% over six months compared to the 10v decline in the Nifty.
Technical indicators show the stock currently trading below its 200-day moving average (Rs 1,407) but holding above its 50-day average (Rs 1,129).
Market participants appear to be weighing the positive impact of the defense orders against broader macroeconomic concerns and potential execution challenges in fulfilling these contracts. The defense sector continues to attract investor interest as India modernizes its military capabilities, though stock-specific movements suggest careful scrutiny of order visibility and profitability metrics.
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