Defence stocks rally up to 7%

MUMBAI: Defence stocks surged nearly 7 per cent today as the Defence Acquisition Council ( DAC) approved proposals worth Rs 4,444 crore.

Shares of Astra Microwave Products jumped 6.92 per cent, while Bharat Electronics Ltd surged 5.40 per cent and BEML gained 3.78 per cent on the BSE.

The Defence Acquisition Council (DAC) yesterday approved proposals worth Rs 4,444 crore, including the purchase of four helicopters for survey vessels at Rs 2,324 crore, but deferred a decision on a joint bid of Tata Sons Ltd and Airbus for replacing IAF's Avro transport fleet.

Besides giving its go-ahead to acquire four choppers, the DAC, under Defence Minister Manohar Parrikar, also cleared the upgradation of the mobile integrated electronic warfare system, Samyukta, at a cost of Rs 1,682 crore, a Defence Ministry spokesperson had said.

Another proposal of Rs 36 crore for acquiring propeller engine for offshore patrol vessel of the Coast Guard was also given a go-ahead, the spokesman said.