Following the Defence Acquisition Council meeting, prices of defence companies' shares dropped in the market today, December 29. The drop in prices happened after the DAC approved several key proposals. The Nifty India Defence index was pushed down around 0.6 percent and closed at 7,728.20 on Monday, Moneycontrol reported.
DAC meeting and respective allocations
Union Defence Minister Rajnath Singh chaired the Defence Acquisition Council (DAC). The council approved proposals worth Rs. 79,000 crore. The allotment has been made in order to buy radars, radios, automatic take-off landing recording systems, and other equipment for the Indian Army, Navy, and Air Force, the Ministry of Defence said today.
An Acceptance of Necessity (AoN) was cleared for the buying of Loiter Munition System for Low Level Light Weight Radars, Artillery Regiments, Long Range Guided Rocket Ammunition for Pinaka Multiple Launch Rocket System (MRLS), and Integrated Drone Detection & Interdiction System Mk-II for the Army.
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The procurement of high-frequency software-defined radios (HF SDR) Manpack and the leasing of high altitude long range (HALE) remotely piloted aircraft system (RPAS) were approved for the Navy, and automatic take-off landing recording system, full mission simulator, Astra Mk-II missiles, and SPICE-1000 long range guidance kits, etc, were cleared for the Air Force, PTI reported.
Defence stocks nosedive
Share prices of Paras Defence dropped 2 percent after the meeting. Cyient DLM's stock prices decreased approximately 2 percent. Solar Industries India, Hindustan Aeronautics (HAL), Data Patterns (India), and Cochin Shipyard share prices dropped close to 1 percent each. Garden Reach Shipbuilders & Engineers (GRSE) shares closed trading with marginal losses. BEML and Bharat Electronics (BEL) share prices decreased more than 1 percent each, Moneycontrol reported.
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On the contrary, Mishra Dhatu Nigam (Midhani) shares gained significantly, increasing by more than 10 percent. Mazagon Dock Shipbuilders, Astra Microwave Products, Bharat Dynamics (BDL), and Bharat Forge stock prices increased marginally.
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