Source Money control
Shares of Bharat Electronics Limited (BEL) and Hindustan Aeronautics Limited (HAL) edged higher by up to 2% in early trade on Thursday, reflecting investor optimism ahead of a crucial meeting of the Defence Acquisition Council (DAC). The meeting is expected to consider defence procurement proposals worth nearly Rs 1 lakh crore, potentially providing a strong pipeline of orders for domestic defence manufacturers.
Market participants are closely tracking the DAC discussions, as the council—headed by Defence Minister Rajnath Singh—plays a pivotal role in approving capital acquisition proposals for the armed forces. Any large-scale approvals are likely to directly benefit state-run defence companies such as BEL and HAL, which are key suppliers of electronics systems, radars, avionics, and aircraft platforms.
BEL shares witnessed steady buying interest, supported by expectations of fresh orders in radar systems, communication equipment, and electronic warfare solutions. Similarly, HAL stock moved higher amid anticipation of new contracts related to fighter aircraft, helicopters, and maintenance services.
Analysts believe that the government’s continued focus on indigenisation under the “Make in India” initiative could further strengthen the order books of domestic defence firms. The push for reducing import dependency and enhancing local manufacturing capabilities has already resulted in a significant increase in defence allocations toward Indian companies.
The upcoming DAC meeting is expected to deliberate on a wide range of proposals, including advanced weapon systems, surveillance equipment, and platform upgrades for the Army, Navy, and Air Force. If approved, these projects could translate into long-term revenue visibility for defence public sector undertakings (PSUs).
Broader market sentiment toward defence stocks has remained positive in recent months, driven by strong order inflows, improving execution capabilities, and policy support from the government. Investors are increasingly viewing the sector as a long-term growth opportunity, given rising geopolitical tensions and India’s emphasis on strengthening its military capabilities.
While short-term movements in BEL and HAL stocks may remain tied to the outcome of the DAC meeting, the overall outlook for the sector appears robust, backed by sustained government spending and a clear policy roadmap favoring domestic players.
