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The Defence Acquisition Council (DAC) of the Central Government approved eight proposals worth more than Rs 54,000 crore on 20 March. After this, a big rise is being seen in the shares of the defence sector today. With this news, the Nifty India Defence Index rose by more than 1% in the morning trade to around 6,245. Today is the seventh consecutive session, when this index is witnessing a rise.
Among the defense stocks,
Apollo Micro System, which makes Rally Air Warning System, is up 4%, Bharat Dynamics (BDL) is up 3%. It is believed that these companies can get the most benefit for the acquisition of Vaurunsastra Torpedoes. This is the reason why these stocks are seeing a rise today. DCX Systems was the most bullish stock in the Nifty India Defense Index. This stock is trading with a gain of 6%. IdeaForge, meanwhile, was trading with a gain of 4%, Zen Technologies was also trading with a strength of 3%. HAL, Paras Defense and BEL are also seeing a rise. Which proposals were approved by the Ministry of Defense? The Ministry of Defense announced on Thursday, March 20, that DAC has approved 8 proposals. Under these proposals, the 1,000 HP engine will be upgraded to a 1,350 HP engine. This is for T-90 tanks in the Indian Army. After the new upgrade, the mobility of these tanks will increase at high altitudes. The proposal also includes Varunastra Torpedoes. This is an anti-submarine torpedo system for the Navy. DAC has also approved the acquisition of Airborne Early Warning & Control (AEW&C) aircraft systems for the Indian Army. What is the opinion of the brokerage firm ICICI Securities said in a report that BEL will benefit from the impact on the companies of the radar ecosystem. Apart from BEL, the brokerage firm has also given BUY rating on BDL and Astra Microwave. This target price for BDL is Rs 1,400 per share, which is about 12% above Thursday's closing price. A target price of Rs 350 per share has been set for BEL and a target price of Rs 935 per share for Astra Micro.
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