Bengaluru, June 11: Shares of Indian defence companies surged on Monday after reports that the Defence Ministry is likely to approve a ₹30,000 crore ($3.6 billion) acquisition of an indigenous surface-to-air missile system for the Indian Army.
Major defence firms including Bharat Electronics Ltd (BEL), Hindustan Aeronautics Ltd (HAL) and Mishra Dhatu Nigam recorded strong intraday gains, buoyed by expectations of new orders. The Nifty India Defence index rose over 1% during the session.
Other defence-related stocks also posted robust performances, with Dynamatic Technologies, Data Patterns (India), Astra Microwave Products, and DCX Systems gaining between 2% and 7%. According to a report by ANI, the Defence Ministry is poised to approve the procurement of three regiments of the Quick Reaction Surface-to-Air Missile (QRSAM) system for the Army’s air defence units.
“The Defence Ministry is scheduled to take up the proposal for buying three regiments of the indigenous QRSAM system for deployment along both western and northern borders,” ANI quoted defence officials as saying.
The QRSAM system, developed domestically, is intended to strengthen the Indian Army’s operational readiness along sensitive frontiers with Pakistan and China. Investors responded positively to the anticipated deal, viewing it as a boost to India’s indigenous defence manufacturing sector under the government’s “Atmanirbhar Bharat” (self-reliant India) initiative.
