Shares of defence companies surged in early trading today following the Defence Acquisition Council’s (DAC) approval of five major capital acquisition proposals worth ₹21,772 crore. The DAC’s decisions include procurement and overhaul initiatives aimed at enhancing the capabilities of India’s armed forces and coastal security.
Key Approvals by DAC:
- Water Jet Fast Attack Crafts and Fast Interceptor Craft:
- Approval for the procurement of 31 Water Jet Fast Attack Crafts for the Indian Navy. These vessels will be instrumental in anti-piracy operations around island territories.
- Advanced Light Helicopters (ALH):
- Six ALHs to be procured for the Indian Coast Guard to bolster coastal security and surveillance.
- Electronic Warfare Suite (EWS):
- Procurement of Airborne Self Protection Jammer pods, next-generation radar warning receivers, and associated equipment for the Su-30 MKI aircraft.
- T-72 and T-90 Tanks Overhaul:
- Approval for the overhaul of tanks and engines for the Sukhoi fighter aircraft.
Market Movement:
Defence stocks reacted positively to the news, with key gainers in the sector as of 9:50 AM:
- Avantel: ₹176.25 (+5.42%)
- GRSE: ₹1,776.70 (+4.24%)
- Data Patterns: ₹2,600.60 (+3.17%)
- BDL: ₹1,189.15 (+3.21%)
- Paras Defence: ₹1,113.10 (+2.20%)
- Mazagon Dock: ₹4,804.60 (+2.12%)
The DAC’s proactive measures in strengthening India’s defence infrastructure have brought significant momentum to the sector, showcasing government commitment to self-reliance and modernization in defence capabilities.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Please consult a financial advisor before making investment decisions.
