Mazagon Dock, Paras Defence, BEML, BDL: Why are defence stocks rising today?

Defence stocks such as Mazagon Dock Shipbuilders, Paras Defence & Space Technologies, BEML, and Bharat Dynamics (BDL) surged up to 7 per cent in Friday’s trade.

Shares of Mazagon Dock climbed as much as 3.40 per cent to hit day’s high of Rs 2,627 on the BSE, from its previous close of Rs 2,540.70 apiece. The counter has gained 14 per cent year-to-date in 2025.

Leading the pack, shares of Paras Defence rallied as much as 6.94 per cent to Rs 716.55 on the BSE, significantly higher than its previous close of Rs 670.05. The stock has delivered an impressive 38 per cent return year-to-date in 2025. Meanwhile, the company announced a key update regarding the divestment of its subsidiary, Ayatti Innovative Private Ltd.

In a regulatory filing submitted during market hours on Friday, Paras Defence said that while the divestment was initially expected to be completed on or before December 31, 2025, the timeline has been extended. 

The filing noted that Paras Defence intends to offload its 58.02 per cent equity stake in Ayatti, which comprises 15,20,000 equity shares of face value of Rs 10 each.

The momentum extended across the sector, with BEML trading 1.36 per cent higher at Rs 1893 on the BSE at last check, compared to its previous close of Rs 1867.65. Similarly, shares of Bharat Dynamics (BDL) advanced 2.48 per cent to hit a day’s high of Rs 1518.05 against a previous close of Rs 1481.30.

Why are defence stocks rising today?

The bullish sentiment is largely driven by the news that the Defence Acquisition Council (DAC) is likely to meet today, December 26, for what is expected to be a consequential session in terms of approvals. Chaired by Defence Minister Rajnath Singh, the council is likely to fast-track several key procurement proposals and emergency purchases to address evolving security challenges.

According to media reports, defence deals estimated at Rs 80,000 crore could receive the green light during this meeting. This follows a previous meeting on October 23, 2025, where the DAC had approved procurement proposals worth approximately Rs 79,000 crore, signaling the government's continued aggressive push on defence modernization.