Defence stocks traded largely higher on Friday ahead of the Defence Acquisition Council (DAC) meeting, which is expected to consider procurement proposals worth around Rs 1 lakh crore.
Bharat Electronics led the gains, rising 1.31% to Rs 420.50. Hindustan Aeronautics advanced 0.81% to Rs 4,470, while Bharat Dynamics climbed 0.59% to Rs 1,393.10. Mazagon Dock Shipbuilders also traded higher, gaining 0.37% to Rs 2,564.40. Bharat Forge slipped 0.18% to Rs 2,138.50, while Paras Defence and Space Technologies fell 3.41% to Rs 1,298.
The DAC, chaired by Defence Minister Rajnath Singh, is scheduled to meet today and will be the first meeting attended by the newly appointed Chief of Defence Staff, General Raja Subramani, Army Chief General Dhiraj Seth and Navy Chief Admiral Krishna Swaminathan.
Among the key proposals expected to be cleared is the procurement of the indigenously developed Man Portable Anti-Tank Guided Missile (MP-ATGM) system for the Indian Army. The proposal includes 100 launchers, 2,300 missiles and five simulators, with Bharat Dynamics set to manufacture the system. The project is estimated to cost more than Rs 2,600 crore.
The council is also expected to consider the procurement of 600 HAMMER precision-guided air-to-ground munitions for the Indian Air Force and the Indian Navy. The missiles will be manufactured by Bharat Electronics under the Make in India initiative in partnership with France's Safran, with the deal estimated to be worth around Rs 2,400 crore.
The Army is also expected to receive a major capability boost through the proposed acquisition of Russian-origin Verba very short-range air defence missile systems, which will be manufactured in India by Adani Defence.
Other proposals likely to come up for clearance include fixed-wing pseudo satellites, naval shipborne aerial systems, software-defined radios, kamikaze drones, drone detection systems and additional Scorpene-class submarines. The meeting is expected to pave the way for one of the largest defence procurement clearances in recent months.