Defense stocks sell-off: After the budget, on 3 February today, there is a fierce selling in defense stock. Bharat Dynamics Limited (BDL), Hindustan Aeronautics Limited (HAL), Bharat Electronics Limited (BEL), Paras Defense and Space Technologies Limited, Majhgaon Dock Shipbuilders Limited and Garden Reach Shipbuilders Limited broke up to 7 percent today. The Nifty India Defense Index today saw a major decline of 5.22 per cent. Out of the 16 shares in the index, only one stock Mishra Metal Corporation is trading on the green mark. At the same time, the biggest decline was seen in Zen Technologies, HAL and BDL.
ICICI Securities told target price
Brokerage firm ICICI Securities has released the list of its top stocks. The firm says that it is a bullish on solar industries. It has been given a ‘Buy’ rating, and a price target of ₹ 13250 has been fixed. Brokerage has also rated BEL and BDL ‘BUY’, whose target price is ₹ 350 and ₹ 1400. In the aerospace sector, Brokerage has bet on HAL and has a ‘add’ rating with a target of ₹ 4660 per share.
| Stock | Rating | Price Target | Potential upset |
| Hal | Add | 4,660 | 17.5% |
| BEL | Buy | 350 | 19% |
| Bdl | Buy | 1,400 | 7% |
| Solar Industries | Buy | 13,250 | 30% |
After the budget 2025, ICICI Securities in its note on the defense sector said that the expenditure is likely to increase. In the budget estimate of FY 26, the capital expenditure on defense services is ₹ 1.8 lakh crore, compared to a rewged estimate of FY25 per annum and 4.7% more than the budget estimate of FY 25.
Extended allocation in budget
Explain that a provision of Rs 6.81 lakh crore has been made in the defense budget for FY 2026. This is 9.5 percent higher than the previous financial year. Capital Expenditure is Rs 1,92,387 crore, while the Revenue Expenditure is Rs 4,88,822 crore, including Rs 1,60,795 crore for pension.
48,614 crore has been allocated for aircraft and aero engines under Capex and Rs 24,390 crore for naval fleet. In addition, Rs 63,099 crore has been fixed for other equipment. However, despite this, selling was seen in the shares of all defense companies on Budget Day.
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