Defence stocks Cyient DLM, HAL, BDL, others decline post Defence Acquisition Council meet

Defence stocks such as Bharat Electronics Ltd., Hindustan Aeronautics Ltd. Bharat Dynamics Ltd., Data Patterns Ltd., Astra Microwave Products Ltd. among others declined on Monday, December 29, after a key meeting of the Defence Acquisition Council (DAC).

The council has approved proposals worth ₹80,000 crore, people in the know told CNBC-TV18.

The Centre has approved proposals for overhaul of T90 tanks and mid-life overhaul of MI 17 helicopters, sources

said. The proposal to acquire MRSAM missiles for the Indian Navy and Air Force has also been approved, they said, adding that the proposals to acquire loitering munitions were approved as well.

The Centre has approved proposals for changes in RFP for the acquisition of refuellers and AWACS, the sources said.

Back in September, Defence Minister Rajnath Singh approved the new Defence Procurement Manual (DPM) 2025, a comprehensive framework aimed at speeding up revenue procurement for the Armed Forces, boosting domestic defence industry participation, and aligning processes with the needs of modern welfare.

The DPM 2025 emphasises on Aatmanirbharta n defence manufacturing, encouraging participation from the private industry, MSMEs and startups as well as the defence public sector undertakings (PSUs).

The Nifty India Defence index has declined 2.9% in the past month but has gained nearly 20% this year, so far.

As many as 13 of the 18 stocks in the Nifty India Defence index were trading with losses around 2.40 pm on Monday, with top loser Cyient DLM declining 1.8%. 

For the year so far, five out of the 18 stocks part of the Nifty India Defence Index have delivered negative returns. Garden Reach is the top gainer on the index in 2025, with gains of 55%, while Zen Tech is the worst performer, with a 44% drop.

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