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Navjoth Deepak, Editor
The landing of Chandrayaan-3 has made global headlines, with India becoming only the 4th nation to make its presence known on the south pole of the moon. An event for the history books, this mission had more effect than just instilling a sense of patriotism among Indians. The economic and financial landscape has taken a turn for the better. The Indian stock markets have experienced a rise after this successful landing.
With funding and support from 13 listed companies, including Larsen and Toubro, Hindustan Aeronautics, BHEL and BEL, and many others playing vital roles in the success of this mission, these companies have also benefited in the form of increases in prices in the stock market. The market cap of companies in the space and defence segment has seen mammoth increases. According to Bloomberg reports, these stocks have added over $2.5 billion in market cap in the week succeeding the landing.
With Chandrayaan-3 costing less than the sci-fi movie Interstellar, these 13 companies have made over 35 times the budget of the satellite. Companies like Linde India, which provided specialized gasses vital for various stages of rocket propulsion and satellite operation, have seen an increase of over 20% in just one week. But the pick of the bunch is Centum Electronics who was the supplier of critical modules and systems for ISRO saw an upsurge of around 30%, reaching an all-time high of Rs.1948 per share.
Avantel, which is a satellite communication provider for ISRO and has been long in the shadows in the market, has also had a tremendous rise in prices. L&T, pioneers in Indian infrastructures, dipped their toes in this mission, and it provided high dividends. In exchange for orbiter modules and antenna mechanisms, L&T had received their biggest peak in their share prices in recent years. Not only private companies but also government entities involved in this mission have massively benefitted. Hindustan Aeronautics Ltd. (HAL), which produced the Lander Module "Vikram" of Chandrayaan-3, increased by 3.5% to reach a new 52-week high of Rs.4,135 per unit.
The Welding Research Institute (WRI) of BHEL, which was in charge of producing and supplying bi-metallic adaptors, also experienced a similar peak in price. All these increases indicate the interconnectedness and co-dependence of companies within the space exploration ecosystem. With global recognition and reputation in the field of space, India will soon be able to pull in more investors, global and international, which will directly lead to growth in the stock market.
The successful landing of Chandrayaan-3 is a significant accomplishment for India's space programme and a source of national pride. Boosting the Indian economy by having a favourable effect on the stock market in India is only one of the many positives that have emerged from this mission. It is essential to take a balanced approach to these potential effects, taking into account both the opportunities and hazards involved. Investors should be aware as the mission develops and be ready for any changes in the market that Chandrayaan-3's progress and results might bring.
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