Defence shares extend rally to fourth day: GRSE, Cochin Shipyard, BEL rise up to 7%; here's why

Defence shares extend rally to fourth straight session.

Defence shares extended their rally for the fourth straight session on Wednesday, with Garden Reach Shipbuilders & Engineers (GRSE), Cochin Shipyard and Bharat Electronics Ltd (BEL) among the major gainers.

The Nifty India Defence index rose 2 percent in Wednesday’s trade, with all 18 constituents in positive territory. The index has gained 7.3 percent over the last four sessions.

The sharp rally is witnessed on the back of strong investor interest and high trading volumes, following the Defence Ministry’s approval of the new Defence Procurement Manual (DPM) 2025.

The revised framework aims to expedite revenue procurement for the armed forces, encourage domestic industry participation and align processes with modern warfare requirements, reported CNBC-TV18.

According to the ministry, the manual is designed to "streamline, simplify, enable and rationalise" the procurement process, while officials said it would help maintain operational readiness through faster decision-making and timely resource availability.

In Wednesday’s trade, shares of GRSE led the rally, rising 7.5 percent to touch an intraday high of Rs 2,624 on the NSE. The stock rebounded after two sessions of decline. A total of 2.7 lakh shares changed hands, generating a turnover of Rs 69.13 crore. The company’s market capitalisation stood at Rs 29,119.12 crore. On the NSE, volumes crossed 30.5 lakh shares by 11:30 am.

Cochin Shipyard shares gained 2.5 percent to Rs 1,866 apiece on the NSE, while BEL advanced 2.16 percent to Rs 411.45 around 11:30 am.

BEL has secured additional orders worth Rs 712 crore since September 1, including contracts for IT infrastructure, cybersecurity solutions, ESM systems, blockchain platforms, communication equipment, spares and services.

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