Defence Rally Takes Off: Stocks Surge as DAC Approves ₹79,000 Crore in New Military Deals

Shares of leading defence companies rallied on Friday after the Defence Acquisition Council (DAC), chaired by Defence Minister Rajnath Singh, cleared capital acquisition proposals worth ₹79,000 crore for the Indian Armed Forces. The move signals strong government commitment toward self-reliance and modernization in defence manufacturing.

According to the DAC approval, the bulk of the investment—nearly ₹60,000 crore—will go toward the Indian Navy for advanced ships, submarines, and surveillance systems. The Indian Army and Air Force will benefit from upgrades to tactical communication systems, drones, and missile programs.

The development triggered broad-based gains across the defence sector, pushing key stocks like Bharat Electronics, HAL, Mazagon Dock, Zen Technologies, and PTC Industries higher by up to 2.7%. Market analysts noted that this round of approvals under the ‘Buy (Indian–IDDM)’ category will significantly enhance order visibility and support long-term earnings growth for domestic defence manufacturers.

Major Takeaways:

DAC clears ₹79,000 crore worth of procurement for Army, Navy, and Air Force.

Majority allocation (₹60,000 crore) earmarked for naval modernization.

Stocks like HAL, BEL, BDL, Mazagon Dock rise between 1.2–2.7%.

Signals stronger “Aatmanirbhar Bharat” thrust in defence production.

Exports projected to reach ₹500 billion by FY29.

Sources: NSE and BSE Circular Data, Ministry of Defence Press Note, Moneycontrol, StockTwits Defence Watch.