Latest news with #NiftyIndiaDefence
News18
7 days ago
- Business
- News18
HAL, BEL Shares Surge As NATO Plans To Boost Defence Spending; Nifty Defence Index Up 1%
Last Updated: Defence stocks like HAL and BEL rose as NATO pledged to raise defence spending to 5% of GDP by 2035 Defence Shares Rise: Shares of domestic defence companies climbed up to 2 per cent on Thursday, June 26, after the North Atlantic Treaty Organisation (NATO) announced plans to ramp up defence spending significantly. The move came after member nations agreed to raise their defence budgets to 5 per cent of their GDP by 2035 — more than doubling the previous 2 per cent target. The decision was formalised in NATO's final summit statement, which followed sustained pressure from U.S. President Donald Trump. 'Allies commit to invest 5 per cent of GDP annually on core defence requirements as well as defence- and security-related spending by 2035 to ensure our individual and collective obligations," said the 32-member alliance. The announcement sparked renewed buying interest in Indian defence stocks. Hindustan Aeronautics Ltd (HAL) and Bharat Electronics Ltd (BEL) each rose as much as 2 per cent in intraday trade. The Nifty India Defence index gained around 1 per cent, led by gains in Garden Reach Shipbuilders, DCX Systems, and Bharat Dynamics. India's defence export momentum has been steadily gaining strength. Since FY2016, total defence exports have surged 13 times, with private sector exports growing by a staggering 67x. The share of domestic procurement in India's defence spending has also increased to 75 per cent, underlining the government's push for self-reliance. The private sector's role has expanded significantly, with its share in defence exports jumping from 13 per cent in FY17 to 62 per cent in FY24. Defence items are being exported to countries like the U.S., France, and Armenia — often involving niche systems such as radar, small arms, and support for co-production initiatives. Despite this momentum, India's contribution to the global defence export market remains low. Between 2020 and 2024, India accounted for just 0.2 per cent of global defence exports. This is in sharp contrast to its position as the world's largest arms importer, with a 9.8 per cent share during 2019–23. Path Ahead: Make in India and Export Push 'The global market is dominated by players like the U.S. (43 per cent share) and France (9.6 per cent), indicating significant room for India to expand its export footprint," noted InCred Equities. With the government's 'Make in India' initiative, a growing defence manufacturing base, and rising private sector involvement, India is well-positioned to capture a larger share of the global arms trade in the years ahead. The government's focus on indigenisation, policy support for defence PSUs, and measures to cut import dependence are seen as structural positives for the Indian defence sector — making it a long-term theme to watch for investors. First Published: June 26, 2025, 13:40 IST
Mint
7 days ago
- Business
- Mint
NATO defence budget hike: HAL, BEL, BDL, Paras Defence, Ideaforge, others to benefit. How many of these you own?
Defence stocks rallied on Thursday buoyed by expectations of increased export orders after NATO leaders pledged to scale up defence spending. Data Patterns (India), Astra Microwave Products, Hindustan Aeronautics (HAL), Bharat Electronics (BEL), Zen Technologies, among other defence stocks rallied up to 4%. The upbeat sentiment in defence stocks lifted the Nifty India Defence index by nearly 1.5%, with most of its constituents trading in the green. The surge in sentiment follows the North Atlantic Treaty Organisation (NATO) leaders' declaration at the Hague Summit, where member states reaffirmed their 'ironclad commitment' to collective defence. They pledged to invest up to 5% of their GDP annually in defence and security-related sectors by 2035. This includes a minimum of 3.5% allocated to core defence capabilities and up to 1.5% for the protection of critical infrastructure. Analysts believe the development could open up significant export opportunities for Indian defence manufacturers. 'If NATO members indeed raise defence spending to 5% of GDP—a substantial increase from current levels—it could significantly reshape global defence procurement dynamics. For India, which is rapidly expanding its defence manufacturing and exports, this shift presents both commercial opportunities and strategic implications,' said Prashanth Tapse, Research Analyst at Mehta Equities Ltd. 'India, with its lower production costs and improving indigenous capabilities, could emerge as an attractive secondary supplier for NATO countries,' he added. Echoing similar views, Krishna Doshi, Research Analyst at Ashika Institutional Equities, said the move opens up substantial export opportunities for Indian defence companies. 'Indian firms already supply a wide range of products including arms, ammunition, fuses, complete weapon systems like the BrahMos supersonic cruise missile, artillery guns, Dornier-228 aircraft, radars, Akash air defence systems, Pinaka rockets, armoured vehicles, as well as protective equipment and uniforms.' Among NATO's 32 member nations, the United States and France are already significant markets for Indian defence exports, she noted. 'Moreover, the Indian government's policy push to promote indigenous defence systems and its ambitious goal of achieving ₹ 50,000 crore in defence exports by FY29 further strengthens the sector's outlook,' Doshi said. Bhavika Joshi, Business Head, INVasset PMS believes that as Western OEMs face capacity constraints, India's defence industry is emerging as a credible and cost-effective partner to plug these gaps. 'From radars and electronics to artillery and ammunition, Indian companies are now part of global defence supply chains. Bharat Forge recently exported 100 155 mm artillery guns to a European country and signed an LOI to supply howitzers to the US Army — milestones that mark India's entry into NATO-aligned heavy weapons markets,' said Joshi. BEL, through its JV with Thales, is supplying components for Rafale radars used in Europe, while Solar Industries is reportedly in talks to supply Pinaka rockets to France amidst ammunition shortages, Joshi added. Tapse identified potential beneficiaries among Indian defence stocks, including Bharat Electronics (BEL) — which specialises in radar systems, communications, and electronic warfare — along with HAL, Bharat Dynamics (BDL), and Data Patterns (India), a niche player in defence electronics and embedded systems. Doshi pointed to Data Patterns India, Zen Technologies, Paras Defence & Space Technologies, Astra Microwave Products, Ideaforge Technology, HAL, BEL and Bharat Dynamics as key stocks that may benefit from the rising global defence expenditure. 'Further, given the prevailing geopolitical tensions, increased defence spending, and the government's emphasis on indigenization and exports, the overall outlook on the defence sector remains positive,' she said. According to Joshi, what's unfolding is a medium-term export supercycle for Indian defence firms—across public and private sectors, and across market caps. 'HAL, BEL, BDL, and Mishra Dhatu Nigam are backed by government credibility and global tie-ups, while private players like Bharat Forge, Solar, Data Patterns, and Dynamatic are showing product readiness and delivery capacity. Many already supply to NATO-aligned primes like Boeing, Airbus, and Lockheed Martin,' Joshi said. Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
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Business Standard
24-06-2025
- Business
- Business Standard
Defence stocks GRSE, MIDHANI, BEML, BDL, Paras dip up to 6%; here's why
Defence shares price action today Shares of public sector undertaking (PSU) defence companies as well as private sector were down up to 6 per cent on the National Stock Exchange (NSE) in Tuesday's intra-day trade on profit booking after the ceasefire announcement between Israel and Iran. Garden Reach Shipbuilders & Engineers (GRSE), Mishra Dhatu Nigam (MIDHANI), BEML, Paras Defence and Space Technologies, Astra Microwave Products, Bharat Dynamics (BDL), Hindustan Aeronautics (HAL), Cochin Shipyard, Mazagon Dock Shipbuilders, Ideaforge Technology, Apollo Micro Systems and ZEN Technologies declined between 2 per cent to 6 per cent. At 09:41 AM; the Nifty India Defence index, the top loser among sectoral indices, was down 2 per cent, as compared to 0.72 per cent rise in the Nifty 50. Why did defence stocks fall today? The dramatic developments in West Asia culminating in President Trump's announcement of ceasefire indicate that the worst of the conflict is over. The US President Donald Trump announced a 'complete and total' ceasefire between Israel and Iran, signalling a potential end to the near 2-week escalating conflict in West Asia. The ceasefire, brokered by Washington DC, will be phased in over 24 hours and aims to officially conclude what Trump labelled 'THE 12 DAY WAR'. The surprise announcement was made via Trump's Truth Social platform late Monday night, shortly after Iran launched missile strikes on the US military base in Qatar in retaliation to American airstrikes on three Iranian nuclear sites. The US reported no casualties. InCred Equities view on aerospace & defence sector India's defence landscape is poised for transformative growth, underpinned by a record ₹6.81 trillion allocation in 2025‐26 - 13 per cent of total central expenditure - and a decade‐long compound annual spending increase of 9 per cent. A decisive 13 per cent boost in capital outlay further marks the government's commitment to cutting‐edge modernization, funding advanced arms, naval vessels, aircraft, R&D, and critical border infrastructure. This dual thrust of robust budgeting and elevated capital investment not only secures operational readiness but also catalyzes indigenous innovation and strategic self‐reliance, charting a clear trajectory towards technological transformation and sustained sectoral growth. However, due to escalating geopolitical tensions, particularly in the Indo-Pacific region and along India's borders with China and Pakistan, analysts at InCred Equities project the budget to rise by ~10 per cent YoY in FY27F, reaching around ~₹7.49 trillion. Capital procurement from domestic sources has increased from 54 per cent in FY18–19 to a robust 75 per cent (approximately ₹1 trillion) in FY23–24, a benchmark sustained in FY24–25 (₹1.05 trillion) and FY25–26 (₹1.11 trillion). This focus on domestic procurement has significantly empowered domestic players, enabling substantial growth for both defence public sector undertakings (DPSUs) and private companies, the brokerage firm said.
Mint
13-06-2025
- Business
- Mint
Israel-Iran war buzz: Defence stocks rally despite weak market sentiments; Ideaforge up 8%
Israel-Iran war buzz: The Indian defence companies saw a significant rally in Friday's trading session despite stock market crash, following a wave of military strikes by Israel on Iran, concerns about a wider conflict have resurfaced, prompting increased investor interest in defense-related companies. Shares of Ideaforge Technology surged by up to 8.1 per cent on the BSE, reaching ₹ 599.60, emerging as the top gainer among Indian defence stocks. Meanwhile, Bharat Dynamics share price rallied 4.6 per cent to ₹ 1930.40 on July 13. Shares of Garden Reach Shipbuilders rose by 6%, while Zen Technologies and Cochin Shipyard are up by 4% to 5%. Other defence stocks like Paras Defence, Hindustan Aeronautics (HAL), Bharat Electronics (BEL) shares were also up between 1-3 per cent. As of 09:30 AM, the Nifty India Defence index was the only sectoral index in the green, rising 0.6 per cent, while the Nifty 50 dropped 1.1 per cent. Earlier today, Israel carried out targeted attacks on Iran's nuclear facilities, resulting in several casualties. In response, Iran has pledged to retaliate, with reports suggesting that it has launched as many as 100 drones toward Israel. In the early hours of Friday, Israel carried out a "preemptive strike" on Iran's capital, Tehran, according to Defence Minister Israel Katz. Loud explosions were reported across the city that morning. 'Moments ago, Israel launched Operation Rising Lion, a targeted military operation to roll back the Iranian threat to Israel's very survival. This operation will continue for as many days as it takes to remove this threat," Israel's Prime Minister Benjamin Netanyahu was quoted as saying in a video message. Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
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Business Standard
13-06-2025
- Business
- Business Standard
Defence stocks HAL, BDL, BEL gain up to 3% in weak market; here's why
Share price movement of defence companies today Shares of defence companies were trading higher by up to 3 per cent on the National Stock Exchange (NSE) in Friday's intra-day trade in an otherwise weak market amid escalating Israel-Iran tensions. Hindustan Aeronautics (HAL), Bharat Dynamics (BDL), Bharat Electronics (BEL), Astra Microwave Products, Zen Technologies, Paras Defence and Space Technologies, Unimech Aerospace and Manufacturing and DCX Systems from the Nifty India Defence index up gained in the range of 1 per cent to 3 per cent. At 09:30 AM; Nifty India Defence index, the sole gainer among sectoral indices, was up 0.6 per cent, as against a 1.1 per cent decline in the Nifty 50. What's driving defence stocks today? In the early hours of Friday, Israel targeted Iran's capital, Tehran, by launching a 'preemptive strike', Defence Minister Israel Katz announced. Explosions were heard across Tehran on Friday morning. Israel's Prime Minister Benjamin Netanyahu, in a video message, said, 'Moments ago, Israel launched Operation Rising Lion, a targeted military operation to roll back the Iranian threat to Israel's very survival. This operation will continue for as many days as it takes to remove this threat.' Defence sector outlook Defence Secretary Rajesh Kumar Singh on Wednesday has said that contracts worth around ₹2 trillion are expected to be signed in FY26, aiming to match FY25's record contract value of ₹2.09 trillion. Of the 193 contracts signed in FY25, 92 per cent were awarded to Indian firms, reaffirming self-reliance and its preference for domestic manufacturing. Singh emphasized that imports should be rare, with technology transfer and Indian production being the norm - even for foreign OEMs seeking Indian contracts. Meanwhile, according to media reports, the Indian Army is set to receive a significant boost with the Defence Ministry expected to soon clear a ₹30,000 crore proposal for the acquisition of three regiments of the indigenous Quick Reaction Surface-to-Air Missile (QRSAM) system. The Defence Acquisition Council is expected to take up the proposal by late June. Developed by BDL and BEL in accordance with the Defence Research and Development Organisation (DRDO), the Quick Reaction Surface-to-Air Missile (QRSAM) is a highly mobile air defence system capable of tracking and engaging targets while on the move or during short halts. With a range of approximately 30 km, it will complement existing systems like Akash and Medium Range Surface to Air Missile (MRSAM) for short to medium-range threats. Defence companies continued to benefit from the government's push on the indigenization while the geopolitical events during the quarter led to Emergency Procurement from government which will lead to additional orders for the defence companies. In terms of aggregate order backlog of PSUs, ₹3.6 trillion crore worth of contracts are in place (4.5x FY25 revenues), giving healthy growth visibility. The order outlook here onwards remains strong as ICICI Securities believe the sector is expected to thrive in the coming years due to faster acquisition processes, greater indigenization, and advanced indigenous systems. Defense exports hit a record ₹23,600 crore in FY25, with strong traction in Europe amid rising budgets. Indian firms are scaling in next-gen domains like AI, drones, & cyber defense, enhancing long-term growth visibility. Despite near-term execution risks, structural tailwinds-indigenization, policy push, & global demand remain intact.
