Defence Stocks Soar: GRSE, Mazagon Dock Jump Up To 6% On New Order Wins

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Posted by AI on 2025-09-12 09:07:06 | Last Updated by AI on 2025-09-12 11:17:35

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Defence stocks were the frontrunners in Monday's session, pushing the Nifty India Defence index higher by nearly 3% amid positive developments in the sector.

The surge was led by Garden Reach Shipbuilders Limited (GRSE) and Mazagon Dock Shipbuilders Limited (Mazagon Dock), which rose by 6% each on new order wins. Investors also piled on other defence stocks, including Bharat Electronics Limited (BEL), Bharat Dynamics Limited (BDL), and Goa Headquartered defense major, Goa Shipyard Limited (GSL).

The uptick in defense stocks comes after the Defense Ministry announced plans to accelerate the procurement process and fast-track the purchase of arms and ammunition from domestic defense suppliers. This move is aimed at boosting the domestic defense industry and reducing India's reliance on costly imports.

The Defense Acquisition Council (DAC), chaired by Defense Minister Rajnath Singh, approved several procurement proposals amounting to INR 104,000 Crores ($13.41 Billion) on September 9th, 2022.

The proposals included the purchase of 21,538 assault rifles, 15 Light Machine Guns (LMGs), and around 41,000 Sig Sauer rifles from the domestic market. Typically, these contracts are tendered by the Indian MoD annually and do not necessarily reflect heightened procurement momentum. However, it does demonstrate a sentiment of positivity and increased activity within the sector.

The move fueled bets of strong order flows and revenue visibility for defense companies, prompting investors to flock to defense stocks, which have been trading at attractive valuations.

This is great news for not just defense stocks and investors, but also for the Indian defense industry, which is poised to play a pivotal role in modernizing India's armed forces and enhancing their operational capabilities.

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