Defence stocks rally as DAC clears Rs 1.10 lakh crore acquisition proposals

Defence stocks experienced a notable surge on Tuesday following government approval for military acquisitions valued at approximately ₹1.10 lakh crore, which will largely benefit domestic manufacturers. The Nifty India Defence index reached a record high, reflecting strong investor confidence in the sector. Analysts highlight the significant order inflow visibility and structural growth opportunities for Indian companies. Despite the rally, analysts say, investors should remain stock selective as valuations have turned demanding. The government's approval is seen as a boost to domestic manufacturers, with many orders expected to be placed in the coming months. Several major defence companies, including Hindustan Aeronautics Limited and Bharat Sanchar Nigam Limited, are expected to benefit from the increased demand.