Cochin Shipyard, GRSE, BEL: Defence stocks shine; Nifty India Defence surges 0.7%; what's the ₹79,000 crore weapons deal?

This is because the Defence Acquisition Council (DAC) on Thursday cleared proposals to procure weapons and military hardware worth ₹79,000 crore, including Nag missiles, amphibious warfare ships, and electronic intelligence and surveillance systems, to boost the combat capabilities of the military.

Last seen, the Nifty India Defence index was 0.69% higher at 8,218.05 levels. Out of 18 constituents of the defence pack, 15 were trading in the green.

The top gainers were BDL, GRSE, Cochin Shipyard, and Paras Defence; all were trading in the range of 2.52% to 1.39%.

According to the NSE, the Nifty India Defence Index aims to track the performance of a portfolio of stocks that broadly represent the defence theme.

From the Nifty Total Market index, stocks forming part of eligible basic industries or those which obtain at least 10% of revenues from the defence industry are eligible to be included in the index and are chosen based on 6-month average free-float market capitalisation.

The weight of the stocks in the index is based on their free-float market capitalisation. Stock weights are capped at 20%.

The procurement proposals were cleared at a meeting of the DAC, chaired by Defence Minister Rajnath Singh.

It is the second major decision on procurement following Operation Sindoor.

Procurement projects worth ₹67,000 crore were approved on August 5.

The DAC approved various proposals amounting to a total cost of about ₹79,000 crore, the defence ministry said.

For the Indian Navy, approval was granted for the procurement of Landing Platform Docks, 30-mm Naval Surface Guns, Advanced Lightweight Torpedoes, the Electro-Optical Infra-Red Search and Track System and Smart Ammunition for the 76-mm Super Rapid Gun Mount.

The procurement of LPDs will help the Navy undertake amphibious operations along with the Army and the Air Force, the ministry said.

LPDs are amphibious warfare ships that are used to transport heavy equipment and land troops.

The ministry said the integrated sea capability provided by LPDs will also help the Navy undertake peacekeeping operations, humanitarian assistance, disaster-relief measures, etc.

"The induction of ALWT, which is indigenously developed by the Naval Science and Technological Laboratory, DRDO, is capable of targeting conventional, nuclear and midget submarines," it said.

The procurement of the 30 mm NSGs will enhance the capability of the Indian Navy and the Indian Coast Guard to carry out low-intensity maritime operations and take anti-piracy measures.

For the Indian Army, approval was accorded for the procurement of the Nag missile system (tracked) Mk-II (NAMIS), the ground-based mobile ELINT (electronic intelligence system) and high-mobility vehicles (HMVs).

The procurement of the NAMIS will enhance the Army's capability of neutralising the enemy's combat vehicles, bunkers and other field fortifications, whereas the GBMES will provide round-the-clock electronic intelligence of enemy activities, the ministry said in a statement.

The induction of HMVs will significantly improve logistic support to the forces in diverse geographical terrains, it said.

The DAC approved the procurement of the Collaborative Long Range Target Saturation/Destruction System for the Indian Air Force. It also cleared some other procurement proposals of the IAF.

The CLRTS/DS has the capability of autonomous take-off, landing, navigating, detecting and delivering payload in the mission area.