Defence Stocks Rally: Paras Defence, BEML, GRSE, HAL, BEL & Others Surge After DAC Clears ₹1.05 Lakh Crore Purchases

Market Performance

On July 4, defence sector stocks witnessed a strong upward rally, triggered by significant procurement approvals from the Defence Acquisition Council (DAC).

• The Nifty India Defence index climbed nearly 1.7%, reaching approximately 9,006 in morning trade.
• A positive sentiment fueled this upward movement after capital acquisition proposals worth ₹1.05 lakh Crore were cleared.

Main News

The DAC, chaired by Defence Minister Rajnath Singh, approved 10 capital acquisition proposals totaling approximately ₹1.05 lakh Crore.

All proposals fall under the Buy (Indian – Indigenously Designed, Developed, and Manufactured) category, highlighting the government's push for Aatmanirbharta (self-reliance) in the defense sector.

Key assets approved include:

• Armoured Recovery Vehicles
• Electronic Warfare Systems
• Surface-to-Air Missiles (SAMs)
• Integrated Inventory Systems
• Naval Mines
• Mine Countermeasure Vessels
• Submersible Autonomous Vessels

The Ministry stated that these acquisitions would strengthen mobility, air defence, logistics, and maritime security.

Company-Wise Share Price Movement

Paras Defence

• Top gainer among defence stocks.
• Rose by nearly 9% to trade at ₹923 per share.
• The rally coincided with the stock turning ex-split on July 4.
• The company had previously announced a 1:2 stock split.

Garden Reach Shipbuilders and Engineers (GRSE)

• Gained over 2.9%.

Zen Technologies

• Also rose by more than 2.9% in trade.

Cochin Shipyard

• Up by approximately 2.7%.

Astra Microwave Products

• Posted gains around 2.7%.

Mazagon Dock Shipbuilders

• Share price increased by more than 2%.

Bharat Dynamics (BDL)

• Also gained over 2%.

BEML

• Rose around 2% on the news.

Data Patterns

• Witnessed a surge of nearly 2%.

Hindustan Aeronautics (HAL)

• Share price increased by over 1%.

Bharat Electronics (BEL)

• Gained more than 1%.

Cyient DLM

• Rose over 1%.

Solar Industries

• Also ended 1% higher during the session.

Summary of the Article

• The DAC's ₹1.05 lakh Crore defence deal approval acted as a catalyst for defence stocks.
• All proposals align with the Make in India initiative and fall under the Buy (Indian-IDDM) category.
• Paras Defence, the day's top gainer, surged nearly 9%, also marking its ex-split date.
• Other significant gainers included GRSE, Zen Technologies, Cochin Shipyard, BDL, BEL, HAL, and more.
• The move underscores a growing investor interest in India's indigenous defence sector, supported by strategic policy measures.