Indo-America Defense Agreement
Defense cooperation agreement is going to be held between the Government of India and the US for 10 years, as soon as this news came out, the shares of defense companies like Hindustan Aeronaotic, BEML and Paras Defense became shares rockets. Let us tell you that in the Nifty India Defense Index, the Paras Defense and Space Technology and Majgo Dock Shipbuilders’ shares recorded more than 1 percent. At the same time, the index itself closed down 0.65%.
On the other hand, shares of India Dynamic, Unimac Aerospace and Manufacturing, Estra Microwave Products, Alloy Corporation, DCX Systems and Zen Technologies saw a decline, which remained below 0.5%.
Indo-America Defense Agreement
According to a statement issued by the Pentagon (US Defense Ministry) on Wednesday, India’s Defense Minister Rajnath Singh and the US Defense Minister Pete Hegseth have agreed to signing a new defense cooperation for the next 10 years between the two countries during a phone conversation. The statement said, in the next meeting, America and India will sign a new 10 -year new defense framework. Both sides also discussed the major defense deals to India from America and industrial partnership in the defense sector.
In this conversation on Tuesday, Rajnath Singh appealed to the US to accelerate the delivery of the GE F404 engine for the Tejas fighter aircraft. In addition, he also demanded to finalize the ongoing deal for the joint construction of F414 jet engine in India between Hindustan Aeronautics Limited (HAL) and US defense company Ge Aerospace.
Sensex and Nifty accelerated
Between the expectations about the Indo-US trade agreement, the major index Sensex and Nifty rose in early trade on Thursday, showing a positive attitude in Asian markets. Analysts said that the US-Vietnam trade agreement also had a positive impact on domestic stock markets.
In early trade, the 30 -share BSE Sensex rose by 242.83 points to 83,652.52. NSE’s 50 -share Nifty rose 83.65 points to 25,537.05. The Sensex companies were prominently shared as the Asian Paints, Tata Steel, Infosys, Mahindra & Mahindra, Atternal and Tata Motors. However, shares of Kotak Mahindra Bank, Bajaj Finance, Trent and Bajaj Finserv were lost.