By : Arbas Ahmed
Introduction
The third and most recent lunar exploration mission conducted by Indian Space Research is called Chandrayaan-3. On 14th July 2023 Chandrayaan 3 was launched. Team ISRO wasn't the only one on this mission despite leading the way. ISRO had partnered with exceptional organizations that flaunt several well-known brands and had also paired up with the current suppliers to turn this lunar vision become a reality. The space mission is being accelerated through partnerships between public and private organizations. For the production of parts and essential components for satellites and their launchers, the government is collaborating with businesses in the private sector. About 140 registered space start-ups in India are working to create technology with practical applications and stand to benefit from the momentum Chandrayaan's success will bring.
This mission is going to have a significant impact on the companies contributed to this mission and also on the Indian stock market as a whole.
Following are the Major Companies that Contributed to Chandrayan 3 in various ways
• Larsen and Toubro (L&T)
• Hindustan Aeronautics
• Bharat Heavy Electricals
• Paras Defence and Space Technologies
• Walchandnagar Industries
• Centum Electronics
• MTAR Technologies
Now let us have a look on how these companies have contributed to Chandrayaan 3 and what impact this mission is going to have on their performance in stock market
Larsen & Toubro Ltd.
When Larsen & Toubro Ltd. disclosed that it has provided essential components to India's moon mission, its stock price increased by 1%. The shares increased 1.28% and were trading at 2485 on July 13, 2023. If we look at the share price growth, it has increased significantly and is currently trading at about 2,664.70 INR today as on 14th August 2023, which indicates an increase of almost 7.98% from last month. The business has acknowledged that it provided crucial parts for the Chandrayaan mission, including the middle section and nozzle bucket flange as well as ground and flight umbilical plates.
Hindustan Aeronautics
The manufacturing company provided National Aerospace Laboratories (NAL) with a number of crucial parts for the Chandrayaan-3 mission. Shares are currently selling at 3,843.35 INR as on 14th august, up by 0.72% from last month, i.e from July 13, the day before Chandrayaan 3 was launched.
Bharat Heavy Electricals Limited
BHEL has attained the singular milestone of providing ISRO with its 100th battery for its extremely significant and vital Chandrayaan 3 mission.
The price of BHEL shares is currently trading at 100.55 INR , up by 8.12% from last month, i.e July 13, 2023, the day before Chandrayaan 3 launched.
Walchandnagar Industries
Walchandnagar Company produced four booster motors. Six booster motors were included in the rocket utilized for the flight. The Head End Segment, Middle Segment, Nozzle End Segment, and Plex Nozzle Control Tank are the four motors, and they are all highly significant.
Shares are currently trading At 108.80 INR up by 19.04%, since Chandrayaan 3's launch last month.
Paras Defence and Space Technologies
In order to help NewSpace India Limited (NSIL) identify ISRO-developed technologies that have the potential to be commercialized and can be transferred to outside entities in the public and private sectors, the Department of Space (DoS) and NSIL signed a memorandum of understanding (MoU) in 2020. Each share is currently down by (-5.66%) INR, trading at 646.90 INR when compared to Chandrayaan 3's launch last month.
Centum Electronics
According to reports, the company has produced between 300 and 500 parts for Indian space projects, including Chandrayaan-3. Currently, the price per share is 1,449.65 INR it has increased by +3.89% after Chandrayaan 3's launch in the previous month. The success of Centum Electronics was enhanced by this mission
MTAR Technologies
ISRO has enlisted Godrej, MTAR Technologies in Hyderabad, and Hindustan Aeronautics Limited in Bengaluru to produce the engine and the stage. The price of each share is currently 2,238.25 INR, up by 6.59% from the previous month. Because of Chandrayaan 3, the share price has increased significantly.
NOTE – Share prices mentioned are as on 14th August,2023.
This was about impact on companies involved in the mission.
Now let us have a look on Impact on Indian stock market as a whole.
Impact on Indian stock market as a whole
Technology and Innovation equities: Chandrayaan 3's successful landings or substantial scientific discoveries could enhance interest in and investment in equities that are associated to technology and innovation. Investors may consider these businesses to be the winners of greater government funding for R&D.
Investor Confidence: Successful space missions, particularly those involving sophisticated technology and scientific breakthroughs, can increase investor faith in the nation's scientists, engineers, and researchers as a whole. This assurance can spread to the financial markets and the overall economy.
Government Spending and policy: The accomplishment of a well-publicized space mission like Chandrayaan 3 may have an impact on government spending and policy in the space and technology industries. This might therefore have an impact on the stocks of businesses that receive government contracts or other forms of support.
Conclusion
Chandrayaan 3 mission will potentially boost the economy. India’s latest space mission signifies the country’s remarkable progress in space exploration and technology. The effort will open a vast horizon for opportunities for Indian private space sector companies. Positive news and developments in the scientific and technology fields might influence market mood favourably. This attitude might affect how investors behave and how they view the economy and different industries. businesses might experience an increase in investor interest, which could have an effect on their stock prices. Chandrayaan 3's accomplishment may indicate improvements in research and development, which could have a positive knock-on effect on a number of industries. R&D-focused businesses might experience an increase in investor interest, which could have an effect on their stock prices. It will attract a lot of investment to the sector for potentially larger returns and will have a positive impact on Indian stock market as a whole.
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