On Wednesday morning, defence stocks such as HAL, BEL, Garden Reach and Mazagon Dock Shipbuilders were soaring at the bourses even as the broader markets opened in the red.
What Happened: The rally today comes as the Defence Acquisition Council (DAC) has approved major procurements worth ₹1.44 lakh crore for the Indian Armed Forces, including future ready combat vehicles (FRCVs), air defence fire control radars for the Army and Dornier 228 aircraft, next-generation fast patrol vessels and next-generation offshore patrol vessels for the Indian Coast Guard.
During its meeting on Tuesday, the DAC, chaired by Defence Minister Rajnath Singh, granted an acceptance of necessity (AoN) for 10 capital acquisition proposals. 99% of these acquisitions will be sourced from Indigenous manufacturers under the “Buy (Indian)” and “Buy (Indian-Indigenously Designed Developed and Manufactured)” categories, reinforcing the government’s focus on self-reliance in defence.
The DAC’s approvals signal the beginning of the long defence procurement process, with the AoN representing the first step. While the grant of an AoN is crucial, it does not guarantee a final order, as further stages of evaluation and negotiation are required.
Price Action: Here is how defence stocks trade on Wednesday morning:
Shares of MTAR Technologies Ltd rose slightly by 0.03% to ₹1,807.85.
Shares of Zen Technologies Limited were up 0.18% to ₹1,680.55.
Shares of Hindustan Aeronautics Ltd increased by 0.28% to ₹4,845.70.
Shares of Bharat Electronics Ltd gained 0.52% to ₹298.70.
Shares of Data Patterns (India) Ltd were up 0.86% to ₹2,760.70.
Shares of Bharat Dynamics Ltd increased by 0.96% to ₹1,332.90.
Shares of BEML Ltd rose by 1.10% to ₹3,892.95.
Shares of Cochin Shipyard Ltd were up 1.21% to ₹1,904.05.
Shares of Paras Defence and Space Technologies Ltd increased by 1.52% to ₹1,263.00.
Shares of Mazagon Dock Shipbuilders rose by 1.74% to ₹4,531.80.
Shares of Garden Reach Shipbuilders & Engineers Ltd led the gains, up 2.01% to ₹1,951.55.
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