HAL, BEL to Zen Technologies: Defence stocks rally on ₹52,000 crore procurement boost; check key beneficiaries
Zen Technologies emerged as the top gainer on the Nifty India Defence index, surging over 4%, followed by Paras Defence and Space Technologies, Bharat Dynamics, Bharat Electronics (BEL), Data Patterns (India), and Solar Industries.
Defence stocks witnessed strong buying interest in early trade on Monday, with shares of Hindustan Aeronautics (HAL), Bharat Electronics (BEL), Zen Technologies, and several other companies rising up to 4%. The rally pushed the Nifty India Defence index higher by 1.6%.
Zen Technologies and Paras Defence and Space Technologies emerged as the top gainers on the Nifty India Defence index, surging over 5% each, followed by Bharat Dynamics, Bharat Electronics (BEL), Data Patterns (India), and Solar Industries India.
Other defence stocks that traded in the green included MTAR Technologies, Hindustan Aeronautics (HAL), Dynamatic Technologies, Mazagon Dock Shipbuilders, and Mishra Dhatu Nigam.
The upmove in defence stocks today came after the Defence Acquisition Council (DAC) on Friday granted in-principle administrative approval to multiple defence acquisition proposals worth ₹52,000 crore, aimed at strengthening the combat capabilities of the Indian armed forces.
For the Indian Army, approval has been granted for procurement of anti-unmanned aerial vehicles (UAV) electronic warfare system ‘Akash Tarnag’, Man Portable Anti-Tank Guided Missile (MPATGM) systems, medium-range surface-to-air missile (MRSAM) weapon system, Very Short Range Air Defence System (V-SHORADS), Active Protection System for tanks and jet-based Kamikaze drone system, the defence ministry said in a statement.
For the Indian Navy, approval was given for the procurement of Multi-Influence Ground Mine (MIGM), Naval Shipborne Unmanned Aerial System (NSUAS) and the setting-up of Land-Based Testing Facility (LBTF) for Electric Propulsion System, it added.
For the Indian Air Force, the DAC approved the procurement of Fixed-Wing Based High Altitude Pseudo Satellite (FW-HAPS) and other proposals.
Defence stocks to benefit
With project approvals worth ₹12.5 lakh crore in FY24-26, analysts believe defence companies have strong growth opportunities in the foreseeable timeframe.
Choice Institutional Equities believes the ₹52,000 crore worth DAC approval reinforces a structural growth cycle for India’s defence sector, rather than a one-off trigger.
“The continued focus on indigenisation and technology-led procurement is anticipated to drive steady order visibility over the next 12–24 months. We remain positive, with Bharat Electronics as a consistent compounder and Bharat Dynamics as a direct play on missile-led growth, while drones and electronic warfare add further long-term upside,” said the brokerage firm.
According to Antique Stock Broking, the potential beneficiaries of the latest DAC approvals include Bharat Dynamics, Bharat Electronics, and Solar Industries India.
The brokerage maintains ‘Buy’ rating on Mazagon Dock Shipbuilders, HAL, Bharat Electronics, Bharat Dynamics, Zen Technologies, Solar Industries, and PTC Industries.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
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Ankit Gohel is the Deputy Chief Content Producer at Livemint, specialising in financial markets, macroeconomics, and regulatory developments. With a strong focus on equity markets, primary issuances, and policy-driven market movements, he brings clarity to complex financial developments for investors and market participants. <br><br> With nine years of experience in business and financial journalism, Ankit’s approach is rooted in the belief that market reporting should go beyond headlines — connecting data, policy, and ground realities to deliver actionable insights. His work consistently bridges the gap between institutional analysis and investor understanding. <br><br> Ankit has spent three years at Livemint, where he currently helps drive market coverage, editorial strategy, and high-impact financial stories. Prior to this, he worked with leading business news networks such as CNBC-TV18, ET Now, TickerPlant News Service where he built deep expertise in stock market analysis, macroeconomic trends, primary markets, and coverage of key regulators including the RBI and SEBI. <br><br> Over the years, he has covered market cycles across bull and bear phases, IPO booms, liquidity shocks, and major policy shifts that reshaped investor sentiment. He has interviewed fund managers, corporate leaders, and policymakers, translating their perspectives into sharp, data-backed narratives. Ankit combines speed with accuracy — ensuring timely, credible, and insight-driven financial journalism that empowers both retail and institutional audiences.
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