Defence stocks drop after DAC meeting: BEL, BEML, Paras Defence shares fall up to 2%

Defence stocks rise

• Defence stocks fell despite DAC approving Rs 79,000 crore equipment proposals
• Nifty India Defence index closed down 0.6 percent at 7,728.20
• Midhani shares surged over 10 percent, bucking the overall downward trend

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The shares of defence companies dropped in trade on December 29 even after Defence Acquisition Council during its meeting approved several key proposals.

The fall in the defence stocks pushed the Nifty India Defence index down around 0.6 percent to close at 7,728.20 on Monday.

DAC meeting outcome:

The Defence Acquisition Council (DAC), chaired by Union Defence Minister Rajnath Singh, has cleared proposals worth Rs 79,000 crore to buy radars, radios, automatic take-off landing recording systems and other equipment for its army, navy and air force, the defence ministry said on December 29.

Acceptance of Necessity (AoN) was approved for the procurement of Loiter Munition System for Artillery Regiments, Low Level Light Weight Radars, Long Range Guided Rocket Ammunition for Pinaka Multiple Launch Rocket System (MRLS), and Integrated Drone Detection & Interdiction System Mk-II for the Indian Army.

Defence stocks today:

Paras Defence shares fell 2 percent, while Cyient DLM shares were down nearly 2 percent at close. BEML and Bharat Electronics (BEL) shares fell more than 1 percent each.

Solar Industries India, Data Patterns (India), Hindustan Aeronautics (HAL) and Cochin Shipyard shares fell nearly 1 percent each, while Garden Reach Shipbuilders & Engineers (GRSE) shares closed in the red with marginal losses.

Bucking the trend, Mishra Dhatu Nigam (Midhani) shares were the top gainers on the index, jumping more than 10 percent. Mazagon Dock Shipbuilders, Bharat Dynamics (BDL), Astra Microwave Products and Bharat Forge shares closed in the green with marginal gains.

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