The Indian defence sector came alive on Monday, December 29, as key defence stocks witnessed a strong rally ahead of the Defence Acquisition Council (DAC) meeting scheduled later today. The excitement among investors is reflected in the Nifty India Defence index, which climbed nearly 1 percent to 7,838.90 by 10:45 am. This marks the fifth rise in six consecutive sessions, showing sustained momentum in the defence segment.
Market Performance
The defence sector is showing a clear uptick in investor interest, with several major companies seeing noticeable gains in early trading. Here’s a quick snapshot of market performance:
- Nifty India Defence Index: Up ~1% to 7,838.90
- Mishra Dhatu Nigam (Midhani): Jumped ~11% to Rs 353.50
- Mazagon Dock Shipbuilders: Up ~3%
- Garden Reach Shipbuilders & Engineers (GRSE): Up >2%
- Bharat Dynamics (BDL): Gained ~2%
- Astra Microwave Products & BEML: Up >1%
- Cochin Shipyard & Hindustan Aeronautics (HAL): Around 1% rise
- Bharat Electronics (BEL), Zen Technologies, Data Patterns (India), Solar Industries India: Marginal gains
- Paras Defence & Bharat Forge: Marginal losses, bucking the sector trend
DAC Meeting Today
The buzz around defence stocks comes ahead of the Defence Acquisition Council (DAC) meeting, chaired by Union Defence Minister Rajnath Singh. Reports suggest the council will consider and approve defence procurement proposals worth approximately Rs 80,000 crore.
Key agenda items include:
- Emergency procurement of critical weapons and military equipment
- Approval of Embraer-based Airborne Early Warning and Control (AEW&C) systems
- Integration of the indigenous NETRA AEW system
These proposals are expected to accelerate fresh orders for the defence sector, adding momentum to investor sentiment.
Company-Wise Performance
Mishra Dhatu Nigam (Midhani) led the charge, posting the highest gains of around 11% to trade at Rs 353.50, reflecting strong market enthusiasm.
Other notable performers:
- Mazagon Dock Shipbuilders: +3%
- Garden Reach Shipbuilders & Engineers (GRSE): +2%
- Bharat Dynamics (BDL): +2%
Companies with moderate gains included Astra Microwave Products, BEML, Cochin Shipyard, HAL, BEL, Zen Technologies, Data Patterns (India), and Solar Industries India.
Meanwhile, Paras Defence and Bharat Forge were trading lower with marginal declines, bucking the broader trend.
Summary
The surge in defence stocks underscores investor optimism ahead of the DAC meeting, which could potentially fast-track procurement proposals worth Rs 80,000 crore. With major defence companies like Midhani, Mazagon Dock, GRSE, and BDL showing strong performance, the sector continues to attract attention from the market.
As the day progresses, all eyes will remain on the DAC announcements and the ripple effect it may have on the defence index and individual stocks.
Source: Moneycontrol
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