Defence Stocks Slide: HAL, BEL, Cochin Fall Up To 4% After Tejas Fighter Jet Crash

Defence Stocks: Shares of Hindustan Aeronautics Limited (HAL) fell 4 per cent intraday on Monday, November 24, following the mishappen of Indian fighter jet Tejas in Dubai. According to media reports, an IAF officer lost his life when a Tejas fighter jet crashed during a Dubai show on Friday.

HAL is the maker of indigenous Tejas fighter jet and is facing backlash and criticism since the accident.

HAL shares opened at Rs 4,424 apiece on Monday, against the previous day close at Rs 4,595 apiece. The scrip was trading at Rs 4,452 with a drop of 3.12 per cent around 9:45 am.

Other defence stocks Bharat Electronics Limited (BEL), Cochin Shipyards, Bharat Dynamics, Garden Reach Shipbuilders have fallen intraday up 1-3 per cent aftermath the mishap. Meanwhile,

Nifty Defence dropped 1.45 per cent to trade at 7,998.

An Indian Light Combat Aircraft (LCA) Tejas crashed while performing a mid-air manoeuvre at the Dubai Airshow on Friday, leaving the pilot, Wing Commander Namansh Syal, dead. The crash occurred around 2:10 PM local time while the aircraft was performing a demonstration flight for the crowd.

“An IAF Tejas aircraft met with an accident during an aerial display at Dubai Air Show, today. The pilot sustained fatal injuries in the accident. IAF deeply regrets the loss of life and stands firmly with the bereaved family in this time of grief,” the Indian Air Force said in an official statement.

Emergency crews rushed to the site as heavy smoke and fire rose from the crash area near the airfield’s perimeter. The Indian Air Force said that a court of inquiry is being constituted to ascertain the cause of the accident.

Meanwhile, the Dubai Media Office has also confirmed that an Indian Tejas fighter aircraft taking part in a flying display at the Dubai Airshow crashed earlier on Friday, leading to the tragic death of the pilot.

HAL Stock Outlook

Moneycontrol reported Siddharth Maurya, Founder & Managing Director at Vibhavangal Anukulakara as saying that the crash will bring sentiment pressure on HAL, with a short-term volatility in the stock that cannot be avoided.

bhinav Tiwari, Research Analyst at Bonanza as MC report quoted, said that HAL shares fell whenever one of its aircraft crashed. “The reaction may improve only if HAL confirms that there is no major technical issue. The stock may recover gradually if the crash does not affect future deliveries or export plans,” he added as quoted by MC report.

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