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Defense stocks jump after DAC grants acceptance of necessity
The Defence Acquisition Council approved in-principle AoN for proposals worth about ₹1.1 lakh crore, with roughly 98% of procurements expected from Indian industry.
Defense shares rose sharply on September 8 after India’s Defence Acquisition Council (DAC) granted Acceptance of Necessity, or in-principle administrative approval, for multiple defense acquisition proposals worth an estimated ₹1.10 lakh crore, according to LiveMint Markets.
The rally outpaced the broader market, with the Nifty India Defence Index up 1.3% while the benchmark Nifty slipped 0.4%. Among major gainers, Astra Microwave Products climbed 4.3% and BEML rose 3.6%, while other advances included Data Patterns (+2.6%) and MTAR Technologies and Apollo Micro Systems (+2.3% each).
LiveMint Markets also linked the move to the DAC meeting chaired by Defence Minister Rajnath Singh on September 7, 2026, when the council accorded AoN to proposals covering the Indian Army, Navy, and Air Force.
The approvals covered systems such as Chemical Biological Radiological and Nuclear Recce Vehicles, High Mobility Vehicles, Self-Propelled Mechanical Mine Layers, Advanced Light Helicopters, Trawl Tanks, and the Sarvatra Bridge System, and the outlet said about 98% of procurements are expected to be made from the Indian industry.