The defense related stocks witnessed a surge up to 5 per cent on the back of announcements made by the finance minister Nirmala Sitharaman during her speech in Budget 2022 in the Parliament.  

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The government has made highest allocation of Rs 5,25,166 crore among others in the Budget FY23. 

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 Amongst the many announcements for the sector, finance minister Nirmala Sitharaman in her Budget speech said 68 per cent of capital for the defence sector will be earmarked for the local industry, as against 58 per cent at present. 

The finance minister said that the 25 per cent of India's defence R&D (research and development) budget will be reserved for private industry and startups.  

“Private industry will be encouraged to take up the design and development of military platforms and equipment in collaboration with DRDO (Defence Research and Development Organisation) and other organizations through the SPV (special purpose vehicle) model,” the Sitharaman said. 

Most of the defense stocks during Tuesday’s session surged between 1-5 per cent, in this, Zen Technologies hit the 5 per cent upper circuit limit at Rs 209.85 per share. 

While other stocks like Mazagon Dock Shipbuilders gained 2.2 per cent to Rs 276.70 apiece. Sika Interplant Systems jumped 1.5 per cent to Rs 919.90 apiece. Paras Defence surged 1.4 per cent to Rs 722.50 per share. 

Meanwhile, other defense related stocks such as BEL, Apollo Micro Systems, Bharat Dynamics and Astra Microwave products, were trading lower.