The stock market today saw a boom on the last trading day of the week. The market's major index Sensex rose by around 193.42 points to close at 83,432.89. Meanwhile, major companies associated with the defense sector like HAL, BEL and BDL shares saw a boom. Let us tell about the reason for the speed in this sector.
The Ministry of Defense approved the purchase of indigenous weapons worth Rs 1.05 lakh crore, after which the shares of the defense sector saw a jump. The Defense Acquisition Council headed by Defense Minister Rajnath Singh approved 10 military procurement proposals under the 'Buy Indian IDDM' category. With this decision, Defense Stocks gained momentum as soon as the market opened and the Nifty India Defense Index recorded an increase of about 2%.
On social media platform X, the Ministry of Defense said that on July 3, DAC approved 10 capital acquisition proposals worth about Rs 1.05 lakh crore under Rajnath Singh. These include armored recovery vehicles, electronic war systems, surface -to -air missiles, integrated inventory systems, naval mines, mine counter major vessels and submersible autonomous vessels. These will promote mobility, air defense, logistics efficiency and marine security.
Following this announcement, on July 4, 2025, Paras Defense and Space Technologies shares saw a rise of more than 9% in early trade. This bounce was not only due to the approval of DAC, but also due to the ex-split date of the company's first stock split (1: 2 ratio).
Similarly, shares of Garden Reach Shipbuilders and Engineers recorded a gain of 2.5% in intraday trade and 2% in the shares of Majhgaon Dock Shipbuilders. Shares of Bharat Dynamics Limited and Solar Industries rose by more than 1%, while the shares of India Electronics saw a jump of about 1.5%. At the same time, HAL shares were close by about one and a half percent to close at 4993.15.
