Mtar Tech, BEL, Paras Defence: Defence stocks volatile ahead of DAC meeting; what investors should know

Defence stocks were trading on a mixed note on Friday, July 3, with the NIFTY India Defence index moving between gains and losses during the session ahead of the Defence Acquisition Council (DAC) meet.

Chaired by Defence Minister Rajnath Singh, the DAC is expected to consider proposals worth over ₹1 lakh crore at the meeting scheduled later on Friday.

According to media reports, the DAC is expected to consider granting Acceptance of Necessity (AoN) to several high-value acquisition proposals aimed at strengthening the operational capabilities of the armed forces. A report by NDTV said that if approved, the proposals would mark another major step in India's military modernisation programme and the government's push for self-reliance in defence manufacturing.

Reports further suggested that a significant portion of the proposals is likely to be related to the Indian Army. Among the key proposals expected to be considered is the procurement of additional K-9 Vajra self-propelled artillery guns.

In March this year, the government had cleared the procurement of a fresh batch of five S-400 missile systems from Russia and 60 medium transport aircraft as well as a few other military platforms at a total cost of ₹2.38 lakh crore to boost the combat prowess of the defence forces.

India’s defence production

India's defence production touched an all-time high of ₹1.78 lakh crore in 2025-26, registering a growth of 15.6% over the previous fiscal, Defence Minister Rajnath Singh had said last month.

In a post on X, Singh said the country's annual defence production rose to ₹1.78 lakh crore in FY26 from ₹1.54 lakh crore in 2024-25. “This milestone represents an impressive 15.6% growth over the previous fiscal year's output of ₹1.54 lakh crore and a staggering 110% increase since FY 2020-21, when the figure stood at ₹84,643 crore,” he added.

The defence minister credited the growth to the government's push for self-reliance in the sector and increased participation of domestic industry. "Under the inspiring leadership of PM Shri Narendra Modi, India's defence production is reaching new heights every year," Singh said.

According to the minister, indigenous defence production has increased nearly fourfold from ₹43,746 crore in 2013-14.

Defence stocks on Friday

After opening at the 9,639.60 level, the NIFTY India Defence index had touched an intraday high of 9,704.55 and a day’s low of 9,555.85. Out of 19 stocks listed on the index, 12 were trading in the red while only 7 were seen with gains.

The index has gained 6% since last month, while it has advanced 23% in a six-month period. On a year-on-year basis, the NIFTY India Defence index has rallied over 8%.

At the time of writing the piece, Mtar Tech was the biggest laggard on the index, declining 5%, followed by Paras Defence (-3.3%), Data Patterns (-2.77%), Axiscades Technologies (-1.7%) and Zen Technologies (-1.5%).

On the flip side, Aequs (2.84%), Astra Microwave (2.73%), Apollo Micro Systems (2.58%), Bharat Electronics (0.8%) and Cochin Shipyard (0.26%) were the top gainers on the index.