BEL, HAL, Bharat Dynamics, Paras Defence Shares Gain After DAC Clears ₹52,000 Crore Defence Acquisition Proposals

Shares of defence companies including Bharat Electronics (BEL), Hindustan Aeronautics (HAL), Bharat Dynamics and Paras Defence & Space Technologies traded higher on Monday after the Defence Acquisition Council (DAC) accorded Acceptance of Necessity (AoN) for capital acquisition proposals worth about ₹52,000 crore.

The approvals, announced by the Ministry of Defence, cover a range of indigenous weapon systems and platforms aimed at strengthening the operational capabilities of the Indian armed forces.

As on 10:45 am, the Nifty India Defence index was up more than 1%. Paras Defence & Space Technologies gained over 5%, while Bharat Dynamics rose nearly 2%. Bharat Electronics (BEL) advanced more than 1.5%, Hindustan Aeronautics (HAL) traded over 1% higher and Solar Industries India also gained.

The Defence Acquisition Council, chaired by Defence Minister Rajnath Singh, granted the in-principle approvals required before procurement proposals move to the tendering, technical evaluation and contract award stages.

According to the Ministry of Defence, the approvals include the Akash Tarang anti-drone electronic warfare system, Man-Portable Anti-Tank Guided Missile (MPATGM) systems, Medium-Range Surface-to-Air Missile (MRSAM) systems, Very Short-Range Air Defence Systems (V-SHORADS), Active Protection Systems (APS) for tanks and jet-powered loitering munitions for the Indian Army.

For the Indian Navy, the DAC cleared proposals for Multi-Influence Ground Mines (MIGM), Naval Shipborne Unmanned Aerial Systems (NSUAS) and the establishment of a Land-Based Testing Facility (LBTF) for electric propulsion systems. The council also approved the procurement of Fixed-Wing High Altitude Pseudo Satellite (FW-HAPS) platforms and other proposals for the Indian Air Force.

The approvals are expected to keep companies such as Bharat Electronics, Hindustan Aeronautics, Bharat Dynamics, Paras Defence & Space Technologies, Data Patterns (India), Zen Technologies, ideaForge Technology, Solar Industries India, Astra Microwave Products, MTAR Technologies and Mazagon Dock Shipbuilders in focus, given their presence across defence electronics, missile systems, drones, surveillance technologies and indigenous manufacturing.

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The government's continued focus on expanding indigenous defence capabilities has supported order visibility for domestic manufacturers in recent years, with companies across defence electronics, missile systems, aerospace and unmanned technologies expected to remain on investors' radar as procurement programmes progress.