Defence Stocks Dip Despite Rs 79,000 Cr DAC Boost; BEL, BEML, Paras Fall

• Defence stocks, including BEL, BEML, and Paras Defence, fell up to 2% on December 29, pushing the Nifty India Defence index down 0.6%.
• The decline occurred despite the Defence Acquisition Council (DAC) approving proposals worth Rs 79,000 crore for military equipment.
• Chaired by Union Defence Minister Rajnath Singh, the DAC cleared procurement of radars, radios, and other equipment for Army, Navy, and Air Force.
• Key approvals included Loiter Munition System, Low Level Light Weight Radars, and Long Range Guided Rocket Ammunition for Pinaka MRLS.
• While most defence stocks dipped, Mishra Dhatu Nigam (Midhani) surged over 10%, with Mazagon Dock Shipbuilders and Bharat Dynamics also seeing marginal gains.

Why It Matters: Defence stocks saw a paradoxical dip despite significant Rs 79,000 Cr procurement approvals by DAC.