BEL, BHEL, BEML Stocks In Focus After Defence Acquisition Council Greenlights Rs 1-Lakh-Crore Worth Purchases
Shares prices of Bharat Dynamics and Astra Microwave Products will also be in the spotlight.
Defence-related stocks like Bharat Electronics Ltd., Bharat Forge Ltd., BEML Ltd. and Bharat Dynamics Ltd. will be in focus on Friday after the Defence Acquisition Council approved 10 capital-acquisition proposals worth Rs 1.05 lakh crore.
All the approvals fall under the Buy (Indian-Indigenously Designed Developed and Manufactured) category, reinforcing the government's continued push for self-reliance in defence production.
The list of approved acquisitions covers a broad spectrum of military assets and systems. Among the significant proposals are the procurement of armoured recovery vehicles, electronic warfare systems, surface-to-air missiles and an integrated common inventory management system for the tri-services.
Defence Companies In Focus
BEML and Bharat Forge are in focus for their involvement in the supply of ARVs, which are essential for battlefield support and logistics.
BEL, Data Patterns (India) Ltd. and Astra Microwave Products Ltd. are set to benefit from the procurement of advanced electronic warfare systems. BEL and Bharat Dynamics are expected to play a major role in the surface-to-air missile segment.
BEL is also linked to the development of the common inventory system. Bharat Heavy Electricals Ltd. is in the spotlight due to the procurement of super rapid gun mounts, a critical component for naval firepower.
Other approvals include items like moored mines, mine countermeasure vessels and submersible autonomous vessels to address maritime threats.
This development follows the previous round of capital-acquisition proposals in March 2025, when the DAC approved eight proposals worth Rs 54,000 crore.
With the current approvals, the pace and scale of procurement have significantly expanded, indicating a sharp increase in the defence ministry's capital expenditure pipeline.
Defence Stock Movement
The Nifty India Defence Index, which captures the performance of listed defence companies, has seen substantial gains earlier this year but has recently entered a phase of correction.
It rose 35% on a year-to-date basis, with robust monthly gains of 25% in March, 13% in April and 23% in May. However, the index moderated in June with a 2.13% gain and is currently down 0.16% for the week and 0.60% in the first few days of July.
