Defence Stocks
Defence stocks jump after Rs 52,000 crore DAC approval sparks buying frenzy
Mumbai/IBNS: Defence stocks surged on Monday after the Defence Acquisition Council (DAC) approved capital acquisition proposals worth approximately Rs 52,000 crore, boosting investor sentiment over the prospects of fresh domestic defence orders, media reports said.
The approvals are expected to generate new business opportunities across key segments, including missile systems, drones and other defence equipment.
Defence stocks rally
Shares of several defence companies witnessed strong buying during the trading session.
- Zen Technologies gained nearly 5 percent.
- Paras Defence and Space Technologies climbed around 5 percent.
- Dynamic Technologies, Unimech Aerospace, and Data Patterns also traded in the green, reflecting broad-based optimism in the sector.
DAC approval lifts outlook
Market participants believe the DAC's clearance of defence procurement proposals worth around Rs 52,000 crore could pave the way for significant domestic orders, strengthening growth prospects for companies involved in defence manufacturing and technology.
The latest approvals are also seen as reinforcing the government's push towards indigenous defence production and self-reliance in the sector.
DAC approves capital acquisition proposals: All you need to know
For the Indian Army, approval of granted for the procurement of Anti-Unmanned Aerial Vehicles (UAV) Electronic Warfare System ‘AKASH TARANG’, Man Portable Anti-Tank Guided Missile (MPATGM) Systems, Medium Range Surface-to-Air Missile (MRSAM) Weapon System, Very Short Range Air Defence System (V-SHORADS), Active Protection System for Tanks and Jet Based Kamikaze Drone System.
AKASH TARANG will provide effective anti-UAV protection to the Army Formations. The MPATGM will enhance the potential of the Infantry to counter mechanised threats of the adversary.
The MRSAM system provides medium range air defence against a variety of stand-off aerial threats.
The V-SHORADS with multi-spectral sensing will enhance counter-measure resilience and effectiveness of the Indian Army. The Active Protection System will be capable of improving the defence mechanism of tanks and enhance their survivability.
The Jet-Based Kamikaze Drones provide better Electronic Warfare capability with greater lethality and survivability while also being cost effective.
For the Indian Navy, approval was given for the procurement of Multi Influence Ground Mine (MIGM), Naval Shipborne Unmanned Aerial System (NSUAS) and the setting-up of Land Based Testing Facility (LBTF) for Electric Propulsion System.
The MIGM will deny freedom of manoeuvre to the adversary. The NSUAS, equipped with advanced sensors, will enhance situational awareness of the Indian Navy. The LBTF will meet the testing requirements for Motors and associated Propulsion Systems of the Indian Naval assets.
For the Indian Air Force, the approval was accorded for the procurement of Fixed-Wing Based High Altitude Pseudo Satellite (FW-HAPS) and other proposals.
The FW-HAPS will carry out persistent Intelligence, Surveillance & Reconnaissance, telecommunication and remote sensing for the Indian Air Force.
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