Shares of India’s defence companies are experiencing gains ranging between 3% and 9% on Tuesday, March 4, 2025. Defence stocks such as Bharat Electronics Ltd. (BEL), Bharat Dynamics Ltd. (BDL), Cochin Shipyard Ltd., Mazagon Dock Shipbuilders Ltd., Garden Reach Shipbuilders Ltd., and Hindustan Aeronautics Ltd. (HAL) are all seeing positive movement in their stock prices.
The gains in Indian defence stocks come on the back of a strong rally in European defence companies. Despite a sharp sell-off in most global equities, European defence stocks like Saab AB, Rheinmetall AG, BAE Systems Plc, and Leonardo saw significant increases between 15% and 20%. A Goldman Sachs basket of European defence stocks also surged 15%, reaching a record high, adding $35 billion to their market capitalisation.
The surge in European defence stocks follows a pledge by regional leaders to increase military spending. French President Emmanuel Macron stated that the EU should allocate €200 billion ($210 billion) to enhance its defence capabilities. This commitment has sparked a rally in defence companies’ shares.
India’s defence exports grew by 32.5% in FY 2024, reaching ₹21,000 crore. India exports defence equipment to over 100 countries, with the top three markets being the US, France, and Armenia, according to an October 2024 PIB release.
The Indian government allocated ₹6.21 lakh crore to the Defence sector in the Union Budget this year. Additionally, India is aiming for ₹1.75 lakh crore worth of defence production in 2025, with a target of ₹3 lakh crore by 2029. The goal is to increase defence exports to ₹50,000 crore by 2029.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing.
Published on: Mar 4, 2025, 11:35 AM IST
Sachin Gupta
Sachin Gupta is a Content Writer with 6+ years of experience in the stock market, including global markets like the US, Canada, and Australia. At Angel One, Sachin specialises in creating financial content that simplifies complex market trends. Sachin holds a Master's in Commerce, specialising in Economics.
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