Macron's Rafale Announcement Lifts Defence Stocks: Data Patterns, BDL and Others Share Price Jump Up to 5.5%

Defence sector stocks recorded gains after French President Emmanuel Macron stated that India and France plan to jointly produce Rafale fighter jets, strengthening bilateral defence cooperation. 

Defence Stocks Gain After Rafale Co Production Announcement 

Shares of Data Patterns India, Bharat Dynamics Limited and other defence companies rose by up to 5.5% following remarks by French President Emmanuel Macron regarding expanded defence cooperation with India. The statement highlighted plans to jointly produce Rafale fighter jets in India. 

Paras Defence and Bharat Electronics shares rose 2.5% and 2%, and Hindustan Aeronautics and GRSE shares moved above 1.5% each. 

Macron said India confirmed its willingness to order 114 additional Rafale jets and co produce them domestically. The Defence Acquisition Council had earlier granted initial clearance for acquiring 114 jets for the Indian Air Force. 

Details of Proposed Rafale Order 

India has already inducted 36 Rafale jets for the Air Force and placed an order for 26 marine variants for the Navy. The proposed 114 jets are reportedly expected to cost ₹3,25,000 crore, equivalent to $35.65 billion, as per media reports. 

As per news reports, up to 90 of the 114 jets could be manufactured in India through a joint venture, although details of the partnership and final agreement are yet to be disclosed. 

Read More: DRDO Shortlists Industry Teams for AMCA Prototype Development Programme! 

Broader Defence Cooperation Between India and France 

During the visit, France also expressed interest in supplying additional submarines to India. The Indian Navy currently operates 6 French Scorpene submarines. 

Macron and Prime Minister Narendra Modi also announced the first H125 helicopter assembly line in India through a joint venture between Airbus and Tata Advanced Systems. In addition, Safran and Bharat Electronics plan to jointly produce HAMMER missiles in India. 

Conclusion 

Defence stocks witnessed gains of up to 5.5% following comments on expanded Rafale co production plans between India and France. The proposed 114 jet acquisition and potential domestic manufacturing arrangements remain subject to technical and commercial negotiations. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.