India’s defence stocks are in the limelight today, following the government’s green signal to massive capital acquisitions worth Rs 1.05 lakh crore.

Chaired by Defence Minister Rajnath Singh, the Defence Acquisition Council (DAC) gave the green light to 10 major procurement deals, all under the Buy (Indian – IDDM) category. As the market opened on Friday, key defence counters surged, lifting the Nifty India Defence Index by nearly 2%.

What the ministry said?

In the social media platform X, formerly twitter, the ministry said, “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, Integrated Inventory Systems, Naval Mines, Mine Counter Measure Vessels, and Submersible Autonomous Vessels. These will enhance mobility, air defence, logistics efficiency, and maritime security.”

Paras Defence leads the charge with 10% surge

Paras Defence & Space Technologies emerged as the top gainer of the day, jumping more than 9% in early trade. The rally came not just on the back of the DAC approvals, but also because the company went ex-split on July 4 for its first-ever stock split.

Shipbuilders stocks: GRSE and Mazagon Dock in focus

Garden Reach Shipbuilders & Engineers (GRSE) saw a 2.5% jump in intraday trade, bouncing back from a nearly 10% correction over the past month. The YTD (year-to-date) gains still stand tall at 83%.

Mazagon Dock Shipbuilders, another PSU, also gained over 2%. With DAC approvals involving Mine Counter Measure Vessels and Submersible Autonomous Vessels, both shipbuilders are seen as likely beneficiaries of upcoming orders in the naval defence space.

Bharat Dynamic (BDL) saw a rise of 2%, and Solar Industries which is a specialist in explosives and strategic defence products, was up by over 1%.

Bharat Electronics (BEL), a PSU electronics major, rose around 1.5%, and Data Patterns, which works on advanced systems and subsystems used in defence platforms, added 2%.

Zen Technologies, which had been under pressure in recent months (down 13% over the last month and 21% YTD), gained 1% in today’s intraday trading.