Government Company Hindustan Aeronautics Share Tumbled, Connection Linked to Tejas Crash
Shares of the government defense company Hindustan Aeronautics Limited (HAL) plummeted as soon as the market opened today. It saw a decline of 8.5%. Its 52-week high is ₹5,166 and the low is also ₹5,166. The Tejas fighter jet was manufactured by HAL.
New Delhi: Shares of the government company Hindustan Aeronautics Limited (HAL) witnessed a sharp decline today. Following the crash of the Tejas fighter jet at the Dubai Air Show, the company’s shares fell by up to 8.5%, reaching a low of ₹4,205.25 on the BSE. The company’s share closed at ₹4,595 in the previous session and opened at ₹4,205.25 today. Its 52-week high is ₹5,166 and the low is also ₹5,166. The Tejas fighter jet was manufactured by HAL. At 10:50 AM, the company’s share was trading at ₹4,435.85, with a decline of 3.46%.
Nilesh Jain, Vice President, Head of Equity Research, Technical and Derivatives at Centrum Broking, said that the crash of the Tejas could have an emotional impact on HAL’s shares. This is adding fuel to the fire, as the structure had already turned negative with a sell crossover on the MACD, and now this news will have some negative effect.
What Will Be the Trajectory?
Anuj Gupta, Director of YW Wealth Global Research, said that HAL’s trend appears sideways. There is strong support at the ₹4,350 level and resistance at the ₹5,000 level. Limited movement is expected in the near future. However, HAL’s trend is sideways to upward, so we are advising ‘Buy’ on HAL at support levels.
How Did the Accident Happen?
On the afternoon of November 21, the Tejas fighter jet crashed while performing stunts in front of a large crowd. In the videos circulating online, the jet, which was a single-seat Light Combat Aircraft (LCA), is seen falling to the ground, with flames immediately erupting at the site.
A plume of black smoke rose above Al Maktoum International Airport at Dubai World Central, drawing the attention of spectators as sirens blared after the crash. The IAF confirmed the death of the pilot in a statement regarding the crash.
Defense Stocks Under Pressure
In addition to HAL, shares of other defense peers also fell on Monday, causing the Nifty Defense Index to drop by about 1.5% in morning trade. While HAL’s shares saw the biggest decline, shares of Data Patterns, GRSE, Zen Tech, Paras Defence, BEML, Cochin Shipyard, and other companies fell by about 2%.
