Indian defence stocks extend gains on optimism over new procurement rules

Paras Defence and Space Technologies

15/09/2025 08:50

Updates

** Defence stocks .NIFTYINDDEFENCE up 0.7%, extending Friday's gains, after India unveiled a new framework to streamline, simplify and rationalise procurement processes for armed forces

** Defence minister on Sunday approved Defence Procurement Manual (DPM), outlining key rules and procedures for all revenue procurements covering an estimated 1 trillion rupees ($11.34 billion) for current FY

** A 0.1% delay penalty will apply after prototype development, with a cap of 5%, rising to 10% only for major delays; no levies in development phase

** "The DPM is a structural positive for the defence sector as it simplifies procurement, reduces execution risks and ensures faster order flow," says ICICI Securities

**  13 out of the 18 constituents on the sub-index trading in the green, led by Paras Defence PRAF.NS, up 4.5%

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

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

($1 = 88.1710 Indian rupees)

 (Reporting by Urvi Dugar and Bharath Rajeswaran)

 ((UrviManoj.Dugar@thomsonreuters.com))