High Budget Expectation ,Led Defense Sector Hit Hard-Stock Drop 40 % , Trading Near 52 Weeks Low
The Union Budget of India has allocated Rs 6,81,210.27 crore for the Ministry of Defence (MoD) for the Financial Year (FY) 2025-26. This represents a 9.53% increase over the Budgetary Estimate for FY 2024-25 and accounts for 13.45% of the total Union Budget, the highest share among all ministries, which is fell short of market expectations, leading to declines in key public and private sector defense stocks, NIBE, PARAS DEFENCE, MTAR, AZAD ENGG, HAL etc.
Of this, Rs 1,80,000 crore, or 26.43% of the total allocation, will be dedicated to Capital Outlay for Defence Services. The allocation for the Armed Forces under the Revenue Head is Rs 3,11,732.30 crore, which constitutes 45.76% of the total budget. Defence Pension receives Rs 1,60,795 crore, or 23.60%, while the remaining Rs 28,682.97 crore, or 4.21%, is earmarked for civil organisations under the Ministry of Defence. The Ministry has also decided to observe 2025-26 as a significant year for strategic initiatives.
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The increase in budget is fells short of expectation and the defence sector shows the resistance and the stock shows the decline on NSE, BSE.
Defence Stock Trend
Since Sep 2024, defence stock trend on the chart is downward direction and the sector was in pressure due the nifty50 was not performing well due to global tension and the earlier USA election , However with the current USA president oath and thier statement for imposing tariff on Canada, China and Mexico , Led the whole globe in dilemma .
Defence Stock Performance in Last Six Month
Defence stocks are trading 30% to 50% below their 52-week highs. Over the past six months, these stocks have declined and are currently trading at or near their 52-week low prices.
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Azad Engg trading below 50% from its high
About Azad Engineering, AE is a key manufacturer of complex, mission-critical components for the aerospace and defence, energy, and oil and gas industries. Their products include turbine engine airfoils, parts for defence and civil aircraft, spacecraft, missiles, and energy systems. specialize in precision-forged and machined components that meet strict “zero defects” standards.
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Paras Defence trading below 37% from its high
About Paras Defence & Space Technologies , it provides a diverse range of products and solutions for Defence and Space applications. With a strong focus on these sectors, our business operates through two key verticals,Optics & Optronic Systems and Defence Engineering, which includes Defence Electronics, EMP Protection Solutions, and Heavy Engineering.
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NIBE trading below 39% below from its high
About Nibe Limited ,NIBE is engaged in the production of structures, sub-assemblies, and assemblies for mobile weapon launchers, including the Pinaka and MRSAM launchers, along with other products for the Indian Defence’s tri-services. The company also manufactures structural systems like Modular Bridges for the Indian Army, as well as engineering systems designed for naval applications.
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HAL trading below 34% below from its high
About HAL, Hindustan Aeronautics Limited (HAL) is a public sector aerospace and defence company based in Bengaluru (Bangalore), India. Founded on 23 December 1940, HAL is one of the oldest and largest aerospace and defence manufacturers globally. It began aircraft production in 1942, The company is governed by a board of directors appointed by the President of India through the Ministry of Defence. In 2024, HAL was granted Maharatna status. HAL is involved in designing and manufacturing fighter jets, helicopters, jet engines, marine gas turbine engines, avionics, hardware development, spare parts supply, and the overhauling and upgrading of Indian military aircraft.
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MTAR Tech trading below 18% from its high
For over four decades, we have supported India’s civilian nuclear power program, establishing strong ties with organizations like NPCIL. We manufacture and supply complex components for nuclear reactors, including fuel machining heads, drive mechanisms, bridge and column assemblies, and coolant channel assemblies. These products are used in both new pressurized heavy-water reactors (PHWR) and the refurbishment of existing ones. Our expertise in producing highly accurate components has set industry-leading standards for quality
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