Defence stocks poised for "ache din"

Prime Minister Narendra Modi’s 4th US visit has certainly brought cheers for the defence sector in India. According to the press release by the White House, the two countries have finalised a defence agreement relating to defence logistics, sharing of maritime information, and even the movement of US aircraft carriers in the region.

The two sides have also signed an MoU to enhance cooperation on Energy Security, Clean Energy and Climate Change; and an MoU on cooperation in Gas Hydrates; as well as another MOU to enhance cooperation on Wildlife Conservation and Combating Wildlife Trafficking.

India is set to become a member of the Missile Technology Control Regime (MTCR), a key anti-proliferation grouping, as it cleared final hurdles in getting membership of the bloc that will help it access high- end missile technology.

President Obama has supported and backed India’s claim for membership of the elite Nuclear Suppliers Group (NSG). The 48-member NSG is an exclusive group that allows member nations to get easy access to, and trade in nuclear energy.

The defence agreement will largely facilitate technology sharing with India to a level commensurate with that of its closest allies and partners.

The global defence strategic fraternity is looking  towards India as a big strategic opportunity, and on the news the Indian defence stocks on the national stock exchanges have rallied. Stocks like Walchandnagar, Reliance Defence, Astra Microwave, NALCO, CIMMCO and Axiscade jumped 10-17 percent intraday on Wednesday.