Share prices of Hindustan Aeronautics Limited (HAL) and Bharat Electronics Limited (BEL) surged around 2% on Friday as the country’s Defence Acquisition Council (DAC) was reportedly approved procurement of equipment.
What Happened: Chaired by Defence Minister Rajnath Singh, DAC has given the nod for a procurement proposal worth ₹80,000 crore, CNBC-Awaaz reported. This approval comes amidst India’s prolonged military standoff with China in eastern Ladakh.
In December 2023, India greenlit initial defence acquisition projects valued at ₹2.23 lakh crore, including the procurement of 97 Tejas light combat aircraft and 156 Prachand combat helicopters. This move would aim to further bolster the combat capabilities of the armed forces.
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The defence ministry highlighted that 98% of the total procurement, amounting to ₹2.23 lakh crore, will be sourced domestically. This strategic decision is expected to provide a substantial boost to the Indian defence industry, aligning with the goal of “Aatmanirbharta” (self-reliance) in the defence sector.
Price Action: HAL’s share price was up 2.6% at ₹3,101.95 in afternoon trade on Friday, while BEL’s stock went up 1.94% to ₹189.55.
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