India’s defense stocks have once again come into the spotlight after the Defence Acquisition Council (DAC) approved capital acquisition proposals worth around ₹67,000 crore to bolster the operational capabilities of the Indian Armed Forces, including the Army, Navy, and Air Force.
On Tuesday, the DAC, chaired by Defense Minister Rajnath Singh, approved defense proposals worth ₹67,000 crore, an official press release stated.
₹67,000 Crore Defense Proposal
Key approvals include night-vision equipment for the Army’s BMP vehicles, compact autonomous surface craft for anti-submarine warfare, BrahMos fire control systems, and BARAK-1 missile system upgrade for the Navy, while the Air Force will acquire mountain radars and upgrade the SPYDER system.
Additionally, all three services will receive MALE drones for long-range surveillance and combat missions. Approvals also cover maintenance of C-17, C-130J aircraft, and the S-400 air defense system.
SEBI-registered investment advisor Adarsh Nimborkar broke down the details of the investment and which firms stand to benefit from it.
The Indian Air Force will strengthen its high-altitude surveillance capabilities with the procurement of Mountain Radars for deployment along the northern borders, Nimborkar said.
Across the tri-services, the approval to procure Medium Altitude Long Endurance (MALE) armed drones marks a major step, with over 60% indigenous content supporting the Make in India drive, he added.
The clearance of over 110 air-launched BrahMos missiles and 87 armed drones will boost India’s long-range precision strike capabilities.
Defence Stocks To Benefit From ‘Make In India’ Initiative
India’s latest defence acquisition push is expected to provide a strong boost to domestic defence manufacturers. Key contracts are likely to be awarded to domestic firms such as HAL, BEL, Bharat Dynamics, Adani Defence, and Solar Defence, according to Nimborkar.
With key orders in areas like drones, missile systems, and radar technology, several defense PSUs are well-positioned to benefit.
Hindustan Aeronautics (HAL)
Hindustan Aeronautics is likely to gain from increased activity in drone production, aircraft maintenance, and radar systems.
Technically, the stock is approaching a major breakout level at ₹4,640. A sustained close above this could set the stage for a rally toward ₹4,850 - ₹4,980, he added.
HAL shares pared early gains and were trading nearly 1% lower at ₹4,531.50. Its year-to-date gains are at 8.4%.
Retail sentiment for HAL on Stocktwits shifted to ‘bullish’ from ‘neutral’ a day earlier. HAL was also among the top 10 trending stocks on the platform.
Bharat Electronics (BEL)
Bharat Electronics stands to benefit from contracts involving radar systems, missile electronics, and system integration. The key breakout level to watch is ₹392, with upside potential toward ₹410 - ₹430 once breached.
BEL shares were trading marginally higher at ₹388.65, having gained 32.7% YTD.
Retail sentiment for BEL on Stocktwits remained ‘bearish’. It was ‘neutral’ a week ago.
Bharat Dynamics (BDL)
Bharat Dynamics is expected to receive orders for BrahMos and other missile-related systems. The stock could see a breakout beyond ₹1,645, with potential to reach the ₹1,700 - ₹1,760 range in the near term.
BDL shares also pared early session gains to trade marginally lower at ₹1,582.8. The stock has surged over 40% YTD.
Retail sentiment for BDL turned ‘bullish’ from ‘neutral’ a day earlier.
Defense: Sector Outlook
Defense firms have seen strong gains in 2025, with the Nifty India Defense Index rallying over 21%.
The sector, especially PSUs, is once again poised for momentum in the coming sessions. As order inflows begin reflecting in quarterly earnings and order books, institutional interest may rise, Nimobrokar said.
He concluded that for both momentum traders and long-term investors, technical breakout confirmations will be key entry signals.
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