Bharat Dynamics, Paras Defence, Bel, And Other Defence Stocks Zoom Up To 6% As Dac Approves Rs 54,000 Crore Procurement Proposals

On March 20, 2025 Defense Acquisition Council (DAC), under the leadership of Defense Minister Rajnath Singh, approved eight capital acquisition proposals that exceeded ₹54,000 crore in value. The defense strategy ensures India acquires advanced military equipment from domestic producers under ‘Make in India’ national initiatives for strengthening defense capabilities. 

Key Approvals By DAC

• The Airborne Early Warning & Control (AEW&C) aircraft systems received approval from the DAC, enabling the Indian Air Force to obtain these systems for aerial surveillance and battlefield awareness. Real-time strategic intelligence and threat detection totally depend on these systems. 
• The T-90 tank fleet of the Indian Army is getting updated through a purchase of new 1350 HP engines that replace the former 1,000 HP engines installed in tanks. The enhanced power system enhances mobility during mountainous operations since it raises the effectiveness of tank-weight performance. 
• The Indian Navy will achieve superior sub-surface warfare potential through the Defense Research Organization (DRDO) that designed Varunastra torpedoes to enhance its anti-submarine warfare capabilities. 

Impact On Defense Stocks

Defense stocks showed positive performance gains after the DAC approval process took effect.

• Bharat Dynamics Limited (BDL) achieved a 5.6% stock surge which resulted in a market value of ₹1,317. The company’s manufacturing activities for missile systems drive its profitability due to the approved procurement plans. 
• The stock value of Bharat Electronics Limited (BEL) increased by more than 1% as investors became optimistic about its activities in developing sophisticated electronic defense systems. 
• Astra Microwave experienced stock price growth of 3.2% to ₹710.95 because investors anticipated more orders for defense system microwave products from the company. 

The positive wave in defense sector sentiment caused Hindustan Aeronautics Limited shares to rise. 

Broader Market Sentiment

The Nifty India Defence index surged by more than 1% during its seventh successive gaining day. The sustained trend demonstrates that investors increasingly trust defense investments because the government vigorously supports military modernization programs with domestic defense production objectives. 

The ‘Make In India’ Initiative Receives Strong Support From The Government At This Time

These approvals by DAC follow the ‘Make in India’ approach to decrease India’s reliance on international defense imports. The government supports local defense production because it aims to develop both defense technology and boost domestic employment while developing national defense manufacturing capabilities. 

The ₹54,000 crore defense procurement proposals approved by DAC unlocked crucial developments of military capabilities alongside strong market performance from major defense companies because investors trust sector expansion potential.