The broad-based decline came despite a bullish sector note published Monday by Motilal Oswal, which maintained Buy ratings on BEL (target ₹520), HAL (target ₹5,500), BDL (target ₹1,800), and Astra Microwave (target ₹1,150).
The Nifty India Defense Index was trading down 1.13 per cent at 8,309.25 around 1 pm on Wednesday, with 15 of 18 constituents in the red. Bharat Electronics (BEL) fell 1.56 per cent to ₹456.10, Hindustan Aeronautics (HAL) dropped 0.97 per cent to ₹4,001, and Bharat Dynamics (BDL) declined 1.75 per cent to ₹1,360.20. The index has shed nearly 885 points from its 52-week high of 9,195.15, though it remains up 48.15 per cent over the past year.
The broad-based decline came despite a bullish sector note published Monday by Motilal Oswal, which maintained Buy ratings on BEL (target ₹520), HAL (target ₹5,500), BDL (target ₹1,800), and Astra Microwave (target ₹1,150). Astra Microwave was among the few gainers on the day, up 0.93 per cent to ₹1,041.
The brokerage cited escalating West Asia tensions as a potential catalyst for higher global defense spending, noting that the region accounted for 26 per cent of global arms imports in FY25. It also flagged India’s Union Budget defense capital outlay increase of 18 per cent year-on-year to ₹2.2 trillion in FY27, and over ₹7 trillion worth of Acceptance of Necessity approvals cleared so far in FY26.
Motilal Oswal projected India’s total defense production to reach ₹3 trillion by FY29-30, roughly double FY25 levels, with exports targeting ₹500 billion over the same period.
On the supply side, the report flagged a key risk: India sources nearly half of its air defense and sensor imports from Israel, raising concerns about component availability if the West Asia conflict prolongs.
Dynamatic Technologies was the worst performer in the index, falling 4.33 per cent, followed by MTAR Technologies down 2.38 per cent and Unimech Aerospace off 1.98 per cent. Cyient DLM led gains at 4.38 per cent, followed by BEML at 1.51 per cent.
Published on March 11, 2026