Defence PSU stocks rally up to 3 pc after Rs 52,000 crore procurement nod

Mumba: State-owned defence companies’ shares traded higher on Monday, surging up to 3 per cent after the Defence Acquisition Council (DAC) approved capital acquisition proposals worth around Rs 52,000 crore to strengthen the operational capabilities of the Indian armed forces.

The Nifty India Defence index rose 1.70 per cent or 163 points to 9,737.15, hitting an intraday high at around 12 pm.

Among the major gainers, Navratna PSU Bharat Electronics Limited (BEL) rose as much as 2.84 per cent to an intraday high of Rs 429.90 on the BSE. At the last count, the stock was trading at Rs 425.15, up 1.71 per cent.

Similarly, Bharat Dynamics Limited (BDL) gained as much as 3.14 per cent to Rs 1,433.10 on the exchange before trimming gains to trade at Rs 1,411, up 1.56 per cent.

Hindustan Aeronautics Limited (HAL) advanced up to 1.55 per cent to Rs 4,497 and was later quoted at Rs 4,472, up 0.99 per cent.

In addition, other defence-related PSU companies’ stocks were trading higher.

Mishra Dhatu Nigam (MIDHANI) climbed as much as 3.32 per cent to Rs 441.70 and was later trading at Rs 438.10, up 2.48 per cent.

Mazagon Dock Shipbuilders Limited (MDL) touched an intraday high of Rs 2,582 before trading at Rs 2,569.60, up 1.04 per cent.

Garden Reach Shipbuilders & Engineers (GRSE) rose as much as 1.69 per cent to Rs 2,793.30 and later traded at Rs 2,758.50, up 0.43 per cent.

Cochin Shipyard Limited climbed to an intraday high of Rs 1,542 and was trading at Rs 1,530, up 0.41 per cent.

Investor sentiment was lifted after the Defence Acquisition Council (DAC), chaired by Defence Minister Rajnath Singh, accorded Acceptance of Necessity (AoN) for capital acquisition proposals worth about Rs 52,000 crore on Friday. The DAC is the country’s highest decision-making body on defence procurements.

The approvals include the procurement of anti-drone systems, missiles, man-portable anti-tank guided missile (MPATGM) systems, Medium Range Surface-to-Air Missile (MRSAM) weapon systems, very short-range air defence systems (V-SHORADS), kamikaze drones, naval unmanned aerial systems and high-altitude surveillance platforms for the Army, Navy and Air Force.

IANS