Defence stocks rose sharply on 4 July after the Defence Acquisition Council (DAC) approved capital acquisition proposals worth around Rs 1.05 lakh crore. The strong jump in share prices propelled the Nifty India Defence index up about 1.7% to around 9,006 this morning.

Earlier on 3 July, Defence Minister Rajnath Singh chaired the DAC, which accepted ten capital purchase requests totalling almost Rs 1.05 lakh crore from indigenous sources. All approved proposals came into the ‘Buy (Indian-Indigenously Designed, Developed, and Manufactured)’ or ‘Buy (Indian-IDDM)’ categories.

DAC approved important defence acquisitions such as armoured recovery vehicles, electronic warfare systems, SAMs, integrated inventory systems, naval mines, mine countermeasure vessels, and submersible autonomous vessels during 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 demand for Made-in-India defence equipment has most certainly pushed defence stocks higher. The index’s highest gainer was Paras Defence, which rose about 9% to Rs 923 per share.

Notably, the dramatic increase in the share price of this multibagger stock occurred after it went ex-split today. Earlier in April, the business announced a 1:2 stock split. However, 4 July was designated as the record date for the stock split.

Garden Reach Shipbuilders and Engineers (GRSE) and Zen Technologies shares both increased by more than 2.9%, while Cochin Shipyard and Astra Microwave Products shares increased by about 2.7% apiece.

Shares of Mazagon Dock Shipbuilders and Bharat Dynamics (BDL) increased by more than 2% each, while BEML and Data Patterns shares increased by almost 2%. The shares of Hindustan Aeronautics (HAL), Bharat Electronics (BEL), Cyient DLM, and Solar Industries all increased by more than 1%.

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