Defence stocks in focus: BEL, Bharat Dynamics, HAL shares gain 4-7% after PM Modi's defence push

Defence stocks surged by as much as 7% on Tuesday after Prime Minister Narendra Modi, in his address to the nation on Monday following the halt in military operations between India and Pakistan, urged for "Made In India" defence equipments. Modi also emphasized the need for increased self-reliance in the military, following India’s initiation of Operation Sindoor in response to the Pahalgam terrorist attack on April 22.

Bharat Electronics (BEL) shares rose by 4.5%, reaching an intraday high of ₹337.30 each during trading on Tuesday. Bharat Dynamics share price experienced a gain of 7.8%, touched an intraday high of ₹1,692.35. In addition, Hindustan Aeronautics shares (HAL shares) jumped by 4%, reaching an intraday high of ₹4,617 per share. Solar Industries experienced a rise of 2.2%, hitting intraday highs of ₹13,583.70. Mazagon Dock Shipbuilders shares climbed by 4%, reaching an intraday high of ₹3,022.30 each on the BSE.

According to Ruchit Jain, VP - Equity Technical Research, Motilal Oswal Financial Services Ltd, the defense stocks have witnessed a renewed buying interest post the recent India Pakistan conflict where our ‘Made in India’ defense technologies have shown exceptional performance. Stocks from this sector have witnessed buying with high volumes with stocks such as BEL and Bharat Dynamics showing signs of outperformance.

“The technical structure indicates a continuation of the uptrend and hence, we expect the stocks to rally higher. Traders can look for buying opportunities in both the stocks at current levels and look to add positions in case of any dips in the near future,” said Jain.

Prime Minister Modi emphasized that India has demonstrated its capabilities in modern warfare. He stated that the moment has arrived for 'Made in India' defense products. The Prime Minister noted that India has enforced a policy of zero tolerance towards terrorism.

As reported by the media, his advocacy for local defense production coincides with rapid advancements in India's domestic defense sector. Official data indicates that the nation's defense manufacturing reached ₹1.27 lakh crore in FY24—a remarkable 174% increase since 2014-15—driven mostly by the Make in India initiative. Defense exports also achieved a record of ₹21,083 crore in the same fiscal year, marking a thirty-fold rise over the last ten years, with deliveries made to over 100 countries, according to reports.

Air Marshal SB Deo (retired), the former Vice Chief of the Indian Air Force, shared with CNBC-TV18 that the initiative for defense self-reliance has been in progress since 2014, but the government’s methods have notably evolved in recent years. He highlighted the success of indigenous projects such as the Akash missile and drone production in Bengaluru as proof that India's industrial capacity can fulfill military needs.

Defence stocks in focus - Technical Views

Anshul Jain, Head of Research at Lakshmishree Investments said that HAL share price is is forming a 30-week-long cup and handle pattern on the weekly chart, signaling a potential bullish setup. However, the volume pattern so far hasn’t been convincing, suggesting a need for stronger confirmation. A breakout above the ₹4,700 level will be key—if sustained, it could trigger an initial move toward ₹5,055. Traders should wait for a high-volume breakout to validate the pattern and consider entries with tight risk controls above ₹4,700.

Further, Anshul Jain said that Mazagon Dock Shipbuilders shares is forming a bullish pennant on the daily chart, signaling potential continuation of its uptrend. A breakout above ₹3,100 will confirm the pattern and could set the stage for a rally toward the ₹3,350 zone. However, confirmation is key—buying should be considered only on a decisive move above ₹3,100 with sustained volume. Until then, it's a watch-and-wait setup for momentum traders.

Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decision.