 "HAL, Mazagon Dock, BEL drive gains in Nifty Defence today; rally explained")
Defence stocks today: Hindustan Aeronautics, Mazagon Dock Shipbuilders, and Bharat Electronics contributed the most to the Nifty India Defence index’s rally on Friday. The rally comes amid hopes that the Defence Acquisition Council (DAC) could clear various defence deals soon.
The NSE Nifty India Defence rose 1.65 per cent to the day's high of 7,791.90 The index has risen 19.95 per cent on a year-to-date basis, compared to a 10.16 per cent gain in the NSE Nifty 50 index in 2025.
The index was trading 0.32 per cent higher as compared to a 0.36 per cent decline in the NSE Nifty 50 index as of 1:53 PM.
Among individual gainers, Paras Defence and Space Technologies rose the most with 6.80 per cent intraday gain on National Stock Exchange (NSE). Dynamatic Technologies, and Mishra Dhatu Nigam were other top gainers. The stocks rose as much as 3.80 per cent and 3.71 per cent on an intraday basis. ALSO READ: IPO calendar: Quiet mainboard; 10 SME listings to grab attention next week
Why did defence stocks rise today?
Defence stocks advanced in Friday's session as buying interest emerged on the expected increase in order books in the run-up to the Defence Acquisition Council's (DAC) meeting. The meeting of the Council, which was scheduled today, has likely been postponed, as per reports. Business Standard couldn't independently verify the development. Nonetheless, the council provides the Acceptance of Necessity (AoN), which is a crucial step before a defence contract gets signed.
It was widely anticipated that the Defence Acquisition Council (DAC) was looking at approving various deals worth, potentially, around ₹80,000 crore.
"The meeting, which will be chaired by the Defence Minister Rajnath Singh Kovind, will likely approve multiple proposals to fast-track acquisitions in the defence sector," The Economic Times had earlier reported.
The DAC may also likely approve key procurement proposals, including emergency purchases, India Today reported. The meeting, as and when it may convene, could focus on boosting operational readiness with fast deliveries of critical weapons and systems even with limited initial quantity.
Which defence company may benefit from DAC meeting?
Bharat Dynamics Limited will be in focus as the Indian Navy has flagged an urgent need for medium-range surface-to-air missiles. The Defence Research and Development Organisation develops these missiles in collaboration with a global company and Bharat Dynamics, according to India Today report.
Hindustan Aeronautics Limited may also be in focus because of the plan to integrate Astra Mk-2 with Su-30MKI and Tejas Mk-2.
Bharat Electronics Limited may also benefit because of the ancillary orders.