India’s top defence stocks, including Hindustan Aeronautics Ltd. (HAL), Bharat Dynamics Ltd. (BDL), and key shipbuilders, rallied on February 4 after Defence Secretary Rajesh Kumar Singh confirmed plans to double last year’s defence contracts.
Speaking to CNBC-TV18, Singh stated that India’s defence orders for the current fiscal year could surpass ₹2 lakh crore, ensuring full order books for OEMs and component manufacturers over the next four to five years.
Key Highlights:
- Hindustan Aeronautics gained 3.58% as of early trading.
- Bharat Dynamics and Bharat Electronics saw notable gains of 1.71% and 2.37%, respectively.
- Other shipbuilding and defence-related firms followed the upward trend.
| Stock | BSE Price (₹) | % Change | NSE Price (₹) | % Change |
|---|---|---|---|---|
| Hindustan Aeronautics Ltd | 3,654.90 | +3.58% | 3,667.40 | +3.93% |
| Bharat Dynamics Ltd | 1,198.20 | +1.71% | 1,208.00 | +2.76% |
| Bharat Electronics Ltd | 280.65 | +2.37% | 283.30 | +3.38% |
| Bharat Forge | 1,174.85 | +3.14% | 1,176.60 | +3.28% |
| Mazagon Dock Shipbuilders | 2,265.30 | +1.39% | 2,284.05 | +2.20% |
| Cochin Shipyard Ltd | 1,416.85 | +0.44% | 1,424.30 | +0.89% |
| Paras Defence | 1,011.30 | +0.82% | 1,014.25 | +1.20% |
Singh emphasized that India has already hit ₹1.15 lakh crore in defence contracts and is on track to achieve the largest annual order intake in the country’s history. He highlighted that India aims to ensure long-term visibility for manufacturers, benefiting both major players and smaller component suppliers.
The Defence Secretary also addressed US President Donald Trump’s proposal for increased Indian defence procurement from the US, indicating that upcoming deals could include American companies, provided they meet indigenisation and quality requirements.
After facing selling pressure over the last two sessions despite increased defence allocations, today’s rally reflects investor optimism about the sector’s long-term growth potential.
