HAL Share Price: Huge fall of 8% in shares!
There was huge selling in the shares of defense sector giant Hindustan Aeronautics Limited (HAL) in the Indian stock market on Wednesday. HAL shares fell as much as 8.3% to a low of Rs 4,100. The main reason for this decline is HAL’s exit from the race to make fighter jets.
Today, on February 4, huge selling was seen in the shares of defense sector giant Hindustan Aeronomics Limited in the Indian stock market. After the stock market opened in the morning, HAL shares fell by 8.3% to a low of Rs 4,100. Till the time of writing the news, HAL shares are trading at 4224.80 with a decline of 6% at 10:51 am.
What is the reason for the fall in HAL shares?
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The main reason for the decline in HAL’s shares is the exit of HAL from the race of making fighter jets.
Private companies won
Three private companies have been shortlisted for India’s ambitious ‘Advanced Multirole Combat Aircraft’ (AMCA) programme:
– Larsen & Toubro (L&T)
– Bharat Forge
– Tata Advanced Systems
Surprisingly, government company HAL could not make it to this list. While HAL’s shares fell as soon as this news came, L&T and Bharat Forge’s shares saw a rise of more than 1%.
How was the election?
The companies have been selected on the basis of their technical expertise, manufacturing capability and financial strength. The special thing is that in the selection process, priority was not given to those companies which already had huge orders. The companies had to prove that they were capable of understanding the design of AMCA, manufacturing, testing and assembling it.
What is AMCA Project?
– The Defense Ministry has set aside a budget of ₹15,000 crore to develop the prototype (initial model).
The selected company will build five prototypes in collaboration with the Aeronautical Development Agency (ADA).
– This is India’s largest military research and development project so far. It is believed that initially 120 aircraft can be ordered for the Indian Air Force. Their delivery is expected to start around 2035.
What will be the next step?
The shortlisted companies will now have to submit their detailed commercial proposals. This will be a fifth generation fighter jet, which will be equipped with stealth technology (ability to avoid radar), Artificial Intelligence (AI) and long-range strike systems.
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