Domestic military industrial companies have grown in market value, the newspaper has said
India’s defense companies have added more than $5 billion to their market value following the escalation of tensions with Pakistan, Bloomberg has reported.
New Delhi has accused Islamabad of harboring terrorists linked to a brutal mass shooting which killed 26 civilians in Kashmir last month. On Wednesday, India said it struck nine “terrorist infrastructure” sites across the border in Pakistan in overnight attacks.
A custom market index tracking ten Indian defense firms shows them growing by around 5% since the April 22 terrorist attack “amid expectations that these firms stand to benefit from the worsening geopolitical situation,” Bloomberg wrote on Wednesday. They include India’s domestic aerospace firm Hindustan Aeronautics Ltd. and missile company Solar Industries India Ltd.
As of Wednesday, Mumbai-based Mazagon Dock Shipbuilders Ltd. gained as much as 4.6%, while Hindustan Aeronautics gained nearly 2%.
Against the backdrop of the escalating situation with Pakistan, Indian Prime Minister Narendra Modi has reportedly postponed his upcoming trips to Croatia, the Netherlands, and Norway.
Modi will also not be among the international leaders at the upcoming celebrations in Moscow of the 80th anniversary of victory in World War II for the same reason. India will instead be represented by an alternate high-level delegation.
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