Defence stocks emerged as the biggest gainers in midday trading after the Defence Acquisition Council approved capital acquisition proposals worth ₹52,000 crore. According to reports from The Financial Express, the approvals cover next-generation air defence systems, anti-tank guided missiles, anti-drone electronic warfare systems, loitering munitions, naval unmanned aerial systems and high-altitude surveillance platforms. Zen Technologies rose more than 6% to ₹1,859, ideaForge gained 5% to ₹863, Paras Defence and Data Patterns climbed 6% and 4% respectively, while HAL and BEL advanced up to 2%. The approvals mark the first administrative stage before procurement begins and place companies such as BEL, BDL, HAL, Paras Defence, Data Patterns, Zen Technologies, ideaForge, Astra Microwave, MTAR Technologies and Solar Industries in focus for potential future orders aligned with indigenous defence manufacturing.
Indian benchmark indices traded with significant gains in midday trade on Monday, July 6. As reported by The Financial Express, the Nifty 50 was hovering above the 24,400 level, while the BSE Sensex clocked in over 600 points gain. Buying interest remained broad-based across sectors, with defence stocks leading the gains after the major procurement approvals. The strong market performance reflects positive investor sentiment driven by both sector-specific developments and broader market momentum.
For the Indian Army, the DAC cleared procurement of the Anti-Unmanned Aerial Vehicles (UAV) Electronic Warfare System 'AKASH TARANG', 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 the Jet-Based Kamikaze Drone System. For the Indian Navy, approvals were granted for the procurement of the Multi Influence Ground Mine (MIGM), Naval Shipborne Unmanned Aerial System (NSUAS) and the establishment of a Land Based Testing Facility (LBTF) for Electric Propulsion Systems. For the Indian Air Force, the council approved the acquisition of a Fixed-Wing Based High Altitude Pseudo Satellite (FW-HAPS), along with other proposals.
Motilal Oswal has reiterated its 'Buy' ratings on HAL, Bharat Electronics and Astra Microwave following the DAC approvals. For Bharat Electronics, the brokerage has retained its 'Buy' recommendation with a target price of ₹510, indicating a potential upside of 23% from current levels. It expects revenue to grow 16% year-on-year, driven by execution of the company's opening order book of about ₹74,000 crore. For HAL, Motilal Oswal has maintained its 'Buy' rating with a target price of ₹5,500, implying an upside of 24% from current levels. The brokerage expects HAL's revenue to grow 9% year-on-year, supported by healthy execution of its opening order book. For Astra Microwave, Motilal Oswal expects revenue to rise 13% year-on-year in the first quarter of FY27, with execution likely to gather pace on the back of an order book of around ₹2,600 crore.
Aastha Spintex share price listed at a discount of 4.41% against its IPO issue price, debuting at ₹130 compared with the issue price of ₹136 after the ₹170 crore public issue was subscribed 4.64 times. According to The Financial Express, the textile manufacturer plans to utilise IPO proceeds for acquiring Falcon Yarns and funding working capital requirements. Radico Khaitan Ltd. share price gained over 4% after reporting strong business update with premium brands delivering healthy growth and double-digit volume expansion. Diamond Power Infrastructure share price rallied over 5% after announcing fresh order wins worth around ₹1,100 crore for power cables and conductors for transmission projects.
