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Shares of defence companies, including Paras Defence, BEML, HAL, and Bharat Electronics, surged on Friday; Key points for investors
Defence Shares Rally (Representational Image)
Defence Stocks Rally: Shares of defence companies, including Paras Defence, BEML, Hindustan Aeronautics, and Bharat Electronics, surged on Friday after the government approved fresh defence equipment purchases worth Rs 1.05 lakh crore. The move boosted investor sentiment, pushing the Nifty India Defence index up by 1.4%.
Paras Defence and Space Technologies led the gains, soaring 8%, while other notable performers included Mishra Dhatu Nigam, Astra Microwave Products, BEML, Unimech Aerospace and Manufacturing, Cochin Shipyard, Bharat Dynamics, Garden Reach Shipbuilders & Engineers, Mazagon Dock Shipbuilders, and BEL — all rising between 1% and 2%.
The rally followed the Defence Acquisition Council’s (DAC) approval on Thursday of 10 capital acquisition proposals, all of which will be sourced indigenously through Indian vendors. The initiative underscores the government’s continued focus on boosting domestic defence manufacturing and self-reliance.
The Ministry of Defence has granted Acceptance of Necessity (AoN) for a wide range of defence equipment as part of its fresh procurement drive. This includes the acquisition of Armoured Recovery Vehicles, advanced Electronic Warfare Systems, an Integrated Common Inventory Management System for the Tri-Services, and Surface-to-Air Missiles for the Indian Army, Navy, and Air Force.
Defence stocks have witnessed a sharp upward trajectory in recent months, spurred by the government’s strategic push to boost self-reliance in defence manufacturing. The emphasis on indigenous production and domestic innovation has created strong investor interest in companies operating in this space.
Among the key beneficiaries of the government’s latest ₹1.05 lakh crore defence procurement approvals, analysts point to several companies with high growth potential. Bharat Dynamics is expected to benefit significantly due to its leadership in missile manufacturing. Bharat Electronics stands out for its expertise in radar systems and electronic warfare solutions.
Cochin Shipyard is likely to gain from new orders related to underwater and autonomous vessels, while Mazagon Dock Shipbuilders could see tailwinds from its ongoing work on destroyers and mine countermeasure vessels. Garden Reach Shipbuilders & Engineers may benefit from anticipated contracts for patrol vessels.
Other potential winners include Paras Defence & Space Technologies, Data Patterns, and Astra Microwave Products. These firms are strategically positioned to capture niche opportunities within India’s fast-evolving and increasingly self-sufficient defence ecosystem.
Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a…Read More
Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a… Read More
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