English
New Delhi: The Defence Acquisition Council (DAC) has accorded Acceptance of Necessity (AoN) to various acquisition proposals for the Defence Forces at an estimated cost of about Rs 52,000 crore. For the Indian Army, approval was granted for the procurement of Anti-Unmanned Aerial Vehicles (UAV) Electronic Warfare System ‘AKASH TARANG’, Man Portable Anti-Tank Guided Missile (MPATGM) Systems, Medium Range Surface-to-Air Missile (MRSAM) Weapon System, Very Short Range Air Defence System (V-SHORADS), Active Protection System for Tanks and Jet Based Kamikaze Drone System.
Amid this, defence sector stocks BEL, BDL among others, remain in focus after the Defence Acquisition Council (DAC) approved Acceptance of Necessity (AoN) proposals worth around Rs 52,000 crore for the Indian Army, Navy and Air Force.
The council, chaired by Defence Minister Rajnath Singh, granted Acceptance of Necessity (AoN) to these proposals last Friday. While AoN is only the initial formal stage of the procurement process, it signifies the government’s intent to purchase, but it does not immediately result in an order or revenue for a company.
The DAC approval also covers projects such as the Man Portable Anti-Tank Guided Missile, Very Short Range Air Defence System, AKASH TARANG Anti-UAV Electronic Warfare System, Jet-Based Kamikaze Drones, and Medium Range Surface-to-Air Missile. Electronics, avionics, control units, actuation, and mission-critical subsystems play a vital role in these systems.
Benchmark indices Sensex and Nifty ended higher, taking their winning run to the fourth day on Monday, helped by buying in blue-chip bank stocks and lower crude oil prices. Fresh foreign fund inflows also added to the optimistic trend in domestic equity market. The 30-share BSE Sensex jumped 521.16 points, or 0.67 per cent, to settle at 78,285.07. During the day, it surged 634.15 points, or 0.81 per cent, to 78,398.06.
The 50-share NSE Nifty climbed 159.50 points, or 0.66 per cent, to end at 24,430.35. In four trading days, the BSE benchmark has jumped 1,806.4 points, or 2.36 per cent, and the Nifty surged 564.6 points, or 2.36 per cent.
From the Sensex pack, HDFC Bank climbed 3.59 per cent, the most among the 30-firms. Mahindra & Mahindra, Bharat Electronics,Reliance Industries, ICICI Bank, and Maruti were also among the winners.
Kotak Mahindra Bank, Tata Consultancy Services, Bajaj Finserv, and Power Grid were among the laggards. Brent crude, the global oil benchmark, declined 0.82 per cent to USD 71.53 per barrel. Foreign Institutional Investors (FIIs) bought equities worth Rs 1,355.33 crore on Friday, according to exchange data.
“Indian equities traded with a positive bias despite mixed global cues, supported by stable crude prices. Continued softness in crude would support inflation, the current account balance, OMC profitability, and overall macro stability,” Vinod Nair, Head of Research, Geojit Investments Ltd, said.
Disclaimer: India.com provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.
(With PTI Inputs)
For breaking news and live news updates, like us on Facebook or follow us on Twitter and Instagram. Read more on Latest Business News on India.com.
