Defence shares rose up to 6% on April 21 amid optimism over Defence Minister Rajnath Singh's three-day visit to Germany to finalise a bilateral defence industrial roadmap. The visit begins on April 21.

The roadmap will provide for a framework for the two countries to initiate co-development and co-production of various military hardware, officials told PTI.

In Berlin, Singh will hold wide-ranging talks with his German counterpart Boris Pistorius and other senior leaders.

"Discussions will focus on enhancing defence industrial collaboration, strengthening military-to-military engagements, and exploring opportunities in emerging domains such as cyber security, artificial intelligence, and drones," the defence ministry said ahead of Singh's trip.

"A defence industrial cooperation roadmap and implementing arrangement for cooperation in UN Peacekeeping operations training are likely to be signed in the presence of both the defence ministers," it said.

The defence and security ties between the two countries have also been on an upswing. With the easing of export control and expeditious clearing of cases, defence exports from Germany to India have increased.

There is a possibility that the two defence ministers may also finalise an inter-governmental agreement for supplying six stealth submarines to the Indian Navy.

Shares of Zen Technologies Ltd. gained as much as 11% on April 21 as the company moves into the defence hardware business and were the top gainer on the Nifty India Defence index, which was trading 1.3% higher.

The other gainers on the index were Data Patterns, Astra Microwave and MTar Tech, which climbed 5%, 3.85% and 3.1%, respectively.

German defence major ThyssenKrupp Marine Systems (TKMS) and Mazagon Dock Shipbuilders Ltd (MDL) were holding price negotiations with the defence ministry for an Euro 5 billion deal to supply six stealth submarines to the Indian Navy.

The deal is being billed as one of the biggest 'Make in India' projects in recent years. Shares of Mazagon Dock were trading 1.8% higher on April 21.

The defence ministry said Singh's visit will provide an opportunity to review the ongoing defence cooperation and identify new avenues for collaboration between the defence industries of both countries.

Singh is also expected to interact with key representatives of the German defence industry, with a view to promoting joint development and co-production under the 'Make-in-India' initiative.

This visit of the defence minister comes after a gap of seven years.

The last visit by an Indian defence minister to Germany was by Nirmala Sitharaman in February 2019.

Pistorius had visited India in June 2023 and held extensive talks with Singh.