Shares of companies with businesses related to the aerospace and defence sectors rose on Thursday, a day after India’s Chandrayaan-3 made a successful landing on the Moon’s south pole.
Shares of Centum Electronics, an electronics system design and manufacturing company, closed at ₹1,769 on Thursday, 7.7 per cent higher over the previous day’s close, after surging 20 per cent in early trade. The stock had gained 15 per cent on Wednesday and is up 25 per cent in the last five trading sessions.
Shares of MTAR Technologies was up 4.1 per cent to ₹2,311 apiece on the NSE after gaining 4.8 per cent the previous day. MTAR Tech’s management told a television channel recently that it had supplied the main parts required for the launch of Chandrayaan-3.
Shares of Paras Defence and Space Technologies, which offers a wide range of products and solutions for defence and space applications, were up 7.3 per cent on Thursday, hitting a 52-week high and extending Wednesday’s gains of 5.5 per cent. The stock has gained 13.7 per cent in the past five trading sessions.
Shares of Avantel, which offers solutions to Indian Defence Services and allied establishments, were up 7.2 per cent on Thursday, with five-day gains of 21.2 per cent.
Shares of Tata Elxsi and Bharat Electronics were up 2.5 per cent and 0.45 per cent respectively. L&T and Hindustan Aeronautics ended, lower by 1 per cent and 1.5 per cent respectively after gaining in early trade.
Companies such as Hindustan Aeronautics (up 3.5 per cent), Centum Electronics and Bharat Forge (up 2.8 per cent) had touched 52-week highs on Wednesday.
“Despite the present euphoria, it is not clear how much each of these companies will benefit out of this and other similar launches in future. While there are expectations of more orders from defence and space sectors, valuations may have run up ahead of fundamentals. So, we may see some consolidation or correction in some of these companies in the near term,” said Deepak Jasani, head - retail research, HDFC Securities.