PSU Defence stocks hits upper circuit as DAC approves Rs 54,000 crore procurement proposals

Following the approval of procurement bids valued at Rs 54,000 crore by the Defence Acquisition Council (DAC), three main PSU Defence stocks surges rapidly. Approvals are important upgrades for the Army, Navy, and Air Force, so strengthening domestic military manufacture and lessening dependence on foreign imports.

Under direction from Defence Minister Rajnath Singh, the DAC also approved new policies to cut procurement times by 10 to 15%, therefore guaranteeing faster purchase. This action conforms with the "Year of Reforms" campaign of the Ministry of Defence, meant to simplify capital purchases for maximum efficiency and effectiveness.

The Key approvals include 1350 HP engines to enhance the battlefield mobility of T-90 tanks, procurement of Airborne Early Warning & Control (AEW&C) aircraft for the Air Force, and Varunastra torpedoes to strengthen the Navy’s anti-submarine warfare capabilities.

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Meanwhile, the Cabinet Committee on Security approved the procurement of 307 Advanced Towed Artillery Gun Systems (ATAGS), India’s first indigenously designed 155mm artillery guns.

Comprising more than 65% local components, the initiative increases domestic defence manufacturing capacity and lessens reliance on imports. The ATAGS project is supposed to provide 20 lakh man-days of employment and increase India's defence exports. The most recent approvals support India's dedication to self-reliance in defence, hence boosting investor confidence and propelling defence company values up on the market.

PSU Stock in focus: Rising 1.58% from its previous finish of Rs 1,246.75, Bharat Dynamics Ltd started at Rs 1,266.45 on March 21, 2025. The stock had a low of Rs 1,266.45 and peaked at Rs 1,317.00 (5.64%). With a market capitalisation of Rs 46,773.38 crore, it traded at Rs 1,278.00, a 2.51% rise.

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Rising 1.35% from its previous close of Rs 297.00, Bharat Electronics Ltd opened on March 21, 2025 at Rs 301.00. At a low of Rs 297.30, the stock peaked at Rs 301.00 (1.35%). Having a market valuation of Rs 2,18,014.15 crore, the stock is trading at Rs 298.25, a 0.42% rise.

 Slightly less than its previous finish of Rs 2,744.85, BEML Ltd opened at Rs 2,740.40. The stock dropped to Rs 2,740.40 at low point and peaked at Rs 2,877.70 (4.84%). Comprising a market capital value of Rs 11,706.48 crore, the stock is trading at Rs 2,811.05, a 2.41% rise.

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