BEML, HAL, BEL, Data Patterns, Apollo Micro Systems: Defence stocks rally up to 9%; check top triggers

In the morning trade, the Nifty India Defence Index was trading 1.53% higher at 8,991.90 levels. All 18 constituents were trading in the green. BEML shares were trading 4.33% higher at ₹4,646 levels. Astra Microwave Products was trading over 4% higher at ₹1,101.30, while DCX Systems was ruling at ₹286.65, up 3.67%.

Paras Defence shares were trading ex-split. The company announced a stock split in the ratio of 1:2.

Shares were trading 9% higher at ₹924.80 on the NSE. The stock witnessed a rally as the stock was adjusted for its stock split.

Apollo Micro Systems was trading 2.60% higher at ₹192.70 levels.

AoNs were accorded for procurement of Armored Recovery Vehicles, Electronic Warfare Systems, Integrated Common Inventory Management Systems for the Tri-Services, and Surface-to-Air Missiles. These procurements will provide higher mobility, effective air defense, and better supply chain management and augment the operational preparedness of the Armed Forces, the government said.

Some of the key players involved in the development and production of surface-to-air missiles (SAMs) include Bharat Dynamics Limited (BDL) and BEL.

BEML (Bharat Earth Movers Limited) manufactures Armored Recovery Vehicles (ARVs) in India, specifically the Arjun ARRV and the ARV-3 (WZT-3M). These vehicles are designed to recover and repair damaged tanks and other heavy military equipment on the battlefield.

The Ministry of Defence also said in its press release that AoNs were also accorded for procurement of Moored Mines, Mine Countermeasure Vessels, Super Rapid Gun Mounts, and Submersible Autonomous Vessels.

"These procurements will enable mitigation of potential risks posed to the naval and merchant vessels. To provide further impetus to indigenous design and development, AoNs were accorded under the Buy (Indian-Indigenously Designed, Developed, and Manufactured) category," the release added.

India, US to seal 10-year defence pact

Meanwhile, Defence Minister Rajnath Singh and his American counterpart, Pete Hegseth, have agreed to firm up a 10-year framework to further expand defence and strategic ties between India and the US.

The decision on the defence framework was mentioned in a Pentagon statement that was released on Wednesday, a day after Singh and US Defence Secretary Hegseth held a phone conversation.

"Secretary Hegseth and Minister Singh agreed to sign the next 10-year US-India Defence Framework when they next meet this year," it said.

"The two discussed pending major US defence sales to India and the imperative of close defense industrial cooperation between the two countries," the Pentagon readout said without providing further details.

In the phone conversation on Tuesday, Singh urged Hegseth to expedite the delivery of GE F404 engines to power the Tejas Light Combat Aircraft, people familiar with the matter said.

Singh also pitched for early finalisation of a proposed deal between Hindustan Aeronautics Ltd. and US defence major GE Aerospace for joint production of F414 jet engines in India, they said.

The delays in the supply of F404 engines by GE Aerospace have resulted in HAL missing the deadline to supply Tejas Mark 1A aircraft to the Indian Air Force.

An Indian readout on Tuesday said Singh and Hegseth discussed a wide canvas of issues ranging from long-term cooperation in the defence sector, including training and military exchanges, to expanding industry collaborations.