Defense stocks surge after Rs 54,000 crore approval

The Defence Acquisition Council (DAC) has approved major military acquisitions worth over Rs 54,000 crore. This decision is set to enhance the capabilities of India's Army, Navy, and Air Force. Among the approved items are new 1,350 horsepower engines for T-90 tanks to replace the current 1,000 horsepower engines. The DAC also introduced new guidelines aimed at speeding up the capital acquisition process. These changes are part of the Ministry of Defence's "Year of Reforms" initiative for 2025. Following the announcements, several defense stocks saw significant increases. Shares in Unimech Aerospace and Manufacturing rose by 8%. DCX Systems jumped nearly 7%, trading at Rs 255.60. Bharat Dynamics also experienced a rise, hitting a high of 5.7% at Rs 1,317.65. Avantel's stock surged to a day's high of Rs 123.46 before settling at 3% higher. Kaynes Technologies saw gains of more than 4%, reaching Rs 4,839.75. Other companies such as HAL and MTAR Technologies also saw their stock prices rise. In the drone sector, shares like DroneAcharya Aerial Innovations reached a 5% limit at Rs 67.96. Zen Technologies increased by 1.73% to Rs 1,315. These gains are linked to expectations of a new 5% GST rate for commercial drones, which could clarify regulations in the industry.