- Defence stocks surged as Defence Minister Rajnath Singh urged more private sector involvement
- Apollo Micro Systems shares rose nearly 11% following the government's increased participation plan
- Nifty India Defence index gained about 1.23%, led by Paras Defence, Astra Microwave, and others
Defence stocks are surging in trade on Monday, with private sector players, in particular, leading the rally after Defence Minister Rajnath Singh reiterated the government's desire to increase private sector participation in defence manufacturing from 25-30% to 50%.
Shares of Apollo Micro Systems emerged as the biggest beneficiary in the wake of this news, surging nearly 11% during trade to hit around Rs 394.
The broader Nifty India Defence index also traded in the green, supported by gains in stocks such as Paras Defence, Astra Microwave Products, Data Patterns, Cyient DLM, Dynamatic Technologies and Solar Industries.
Paras Defence climbed over 5%, while Astra Microwave rose more than 4%. Data Patterns and Dynamatic Technologies also posted strong gains during the session. The index itself is trading with gains of around 1.23%, which is in tandem with the 1% in the benchmark Nifty 50 index.
The rally follows Rajnath Singh's recent remarks that private companies are no longer just suppliers of components, but are now producing advanced weapons systems and critical defence technologies.
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