Defence stocks saw a significant surge on July 4 after the Defence Acquisition Council (DAC) approved capital acquisition proposals worth approximately Rs 1.05 lakh crore. The sharp rise in the share prices pushed the Nifty India Defence index up nearly 1.7 percent to hover around 9,006 in the morning.
Defence Minister Rajnath Singh-chaired DAC on July 3 approved 10 capital acquisition proposals worth nearly Rs 1.05 lakh crore through indigenous sources. All the approved proposals fell under the 'Buy (Indian–Indigenously Designed, Developed and Manufactured)' or Buy (Indian-IDDM) category.
Armoured Recovery Vehicles, Electronic Warfare Systems, SAMs, Integrated Inventory Systems, Naval Mines, Mine Counter Measure Vessels, and Submersible Autonomous Vessels were among the key defence acquisitions approved by DAC in its meeting.
"These will enhance mobility, air defence, logistics efficiency, and maritime security. All AoNs have been accorded under the Buy (Indian-IDDM) category, reinforcing the push for Aatmanirbharta in defence," the ministry said in a post on X.
The Defence Acquisition Council, chaired by Raksha Mantri Shri @rajnathsingh on July 3, approved 10 capital acquisition proposals worth approx. Rs 1.05 lakh crore through indigenous sources. Key approvals include Armoured Recovery Vehicles, Electronic Warfare Systems, SAMs,…— Ministry of Defence, Government of India (@SpokespersonMoD) July 3, 2025
The push for Made-in-India defence equipment has likely pushed the defence stocks higher. Paras Defence shares were the top gainer on the index, rallying nearly 9 percent to trade at Rs 923 apiece.
Notably, the sharp rise in the share price of this multibagger stock comes after it turned ex-split today. Earlier in April, the company had announced that it will be splitting stocks in the ratio of 1:2. July 4 was set as the record date for the stock split.
Garden Reach Shipbuilders and Engineers (GRSE) and Zen Technologies shares surged over 2.9 percent each, while Cochin Shipyard and Astra Microwave Products shares gained around 2.7 percent each.
Mazagon Dock Shipbuilders and Bharat Dynamics (BDL) shares gained over 2 percent each, while BEML and Data Patterns shares were up around 2 percent. Hindustan Aeronautics (HAL), Bharat Electronics (BEL), Cyient DLM and Solar Industries shares gained over 1 percent each.
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