Defense stocks surged following the approval of capital acquisition proposals totaling Rs 84,560 crore by the Defence Acquisition Council (DAC), aimed at enhancing the capabilities of the Armed Forces and Indian Coast Guard. At 9:30 am on February 19, Bharat Electronics stock was trading at Rs 192.30 (up by 2.12 percent), while Bharat Dynamics was at Rs 1,742.95 (up by 1.93 percent). Although HAL’s stock initially opened positively, it declined to Rs 3,064.10 (0.4 percent lower) by 9:50 am.
The approved acquisitions include various equipment such as new generation anti-tank mines, Air Defence Tactical Control Radar, Heavy Weight Torpedoes, Medium Range Maritime Reconnaissance and Multi-Mission Maritime Aircraft, Flight Refueller Aircraft, and Software Defined Radios, as announced by the Ministry of Defence. Additionally, the Ministry stated that amendments to the Defence Acquisition Procedure (DAP) 2020 have been approved by the DAC to foster a favorable defense start-up ecosystem and facilitate the procurement of advanced technologies from start-ups and MSMEs developed under the Innovations for Defence Excellence (iDEX) and Technology Development Fund schemes.
