Indian defence stocks extend gains on optimism over new procurement rules

Paras Defence and Space Technologies

15/09/2025 07:57

** Defence stocks .NIFTYINDDEFENCE extend gains by 0.7% after India unveiled a new framework to streamline, simplify and rationalise procurement processes for armed forces

** Defence Minister Rajnath Singh on Sunday approved the Defence Procurement Manual, outlining key rules and procedures for all revenue procurements covering an estimated 1 trillion rupees for the current financial year

** Revenue procurement pertains to day-to-day spending for operational needs

** A 0.1% delay penalty will apply after prototype development, with a cap of 5%, rising to 10% only for major delays, encouraging timely but sincere efforts. No levies in development phase

**  13 out of the 18 constituents on the subindex were trading in the green, lead by Paras Defence PRAF.NS which was up 4.5%

** Cochin Shipyard COCH.NS, Astra Micro ASTM.NS and Cyient DLM CYIT.NS up between 2% and 2.6%

** YTD, defence stocks up 24%, outperforming Nifty 50's .NSEI 6% climb

 (Reporting by Urvi Dugar)

 ((UrviManoj.Dugar@thomsonreuters.com))