Shares of defence companies surged on October 24, following the Defence Acquisition Council's approval of various army contracts amounting to Rs 79,000 crore. Key players such as Bharat Dynamics, BEML, and Cochin Shipyard experienced gains between 0.78% and 2.72%. The approval is expected to create significant opportunities for domestic defence manufacturers, with Bharat Dynamics anticipated to receive a major portion of the contracts, particularly for products like Light Weight Torpedos and NAG Missile systems. In 2025, the stock performance of several companies has been notable, with Garden Reach Shipbuilders rising 63% and Bharat Dynamics climbing 39%.

Additionally, the Ministry of Defence introduced a new Defence Procurement Manual aimed at simplifying regulatory processes. This includes changes to liquidated damages related to delayed deliveries, with a cap of 10% imposed only for significant delays, and a more lenient 0.1% per week penalty for indigenisation cases. On the same day, the Nifty India Defence index was trading 0.6% higher at 8,210, marking its seventh consecutive day of gains, with a total increase of 3% over the past week. These developments indicate a positive outlook for the defence sector as it bolsters domestic production capabilities and streamlines procurement processes.