Defence stocks rally: Apollo Micro Systems, Data Patterns, HAL, BEL surge as DAC clears acquisition push, Aequs tanks 19% after Q2
Apollo Micro Systems and Data Patterns led with over 8% gains; BEML, HAL, and BEL also rose. The defence index jumped about 3% to 8,907.90
Defence stocks experienced a significant rally on Tuesday following the Defence Acquisition Council (DAC) approving acquisition proposals worth ₹2.12 lakh crore for the armed forces. Led by Apollo Micro Systems and Data Patterns, which surged over 8%, BEML, HAL, and BEL also gained ground. The defence index rose close to 3% to 8,907.90.
While several defence companies benefitted from the acquisition push, Aequs saw a sharp decline of nearly 19% following its second-quarter results. The proposed acquisitions encompassed various defence modernisation needs, including tracked guns, helicopters, drones, and ship decoys. Companies like BEL, HAL, BEML, and GRSE could potentially benefit from the acquisitions, depending on procurement allocations, tender participation, competitive bidding, and final vendor selection.
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