Major defence stocks witnessed a sharp rally in opening trade on Tuesday after the Defence Acquisition Council (DAC) approved capital acquisition proposals worth about Rs 2.12 lakh crore for the armed forces.
MTAR Technologies, Apollo Micro Systems, Data Patterns (India), Paras Defence and Astra Microwave Products were among the biggest gainers in the early trade. Hindustan Aeronautics (HAL), Bharat Electronics (BEL), Bharat Dynamics (BDL) and Solar Industries India also traded higher.
Shares of Apollo Micro Systems jumped 5.62% to Rs 434, while MTAR Technologies advanced 4.98% to Rs 6,910.50. Data Patterns (India) gained 4.27% to Rs 3,935, and Astra Microwave Products rose 3.18% to Rs 1,545.90.
Paras Defence and Space Technologies climbed 2.67% to Rs 1,287.50, while HAL advanced 1.80% to Rs 4,861. BEL shares rose 1.42% to Rs 368.15, and Solar Industries India gained 0.71% to Rs 18,816. Bharat Dynamics was up 0.74% at Rs 1,036.60.
The DAC, chaired by Defence Minister Rajnath Singh on October 26, accorded Acceptance of Necessity (AoN) to various capital acquisition proposals for the Indian Army, Navy and Air Force. The estimated cost of the proposals is about Rs 2.12 lakh crore.