Budget 2025: BHEL, Bharat Dynamics, other defence stocks fall up to 9% on small capex rise

Both the PSU and private defense players were at the receiving end of investors' ire. While Hindustan Aeronautics Limited (HAL), Bharat Dynamics, Bharat Electronics (BEL), Bharat Heavy Electricals (BHEL) fell up to 6% around 1:30 pm, private peers like Paras Defense and Space Technologies, Data Patterns and MTAR Technologies were down by 9%.

"The modest increase in Capex outlay from Rs 11.11 lakh crore in last fiscal to Rs 11.2 Lakh crore is much lower than expectation. The government's focus until now was on Infrastructure and capex seems to be taking a hit due to political compulsions and freebie politics. With this modest increase the railways, defense, infrastructure and engineering is likely to take a hit. On the other hand, FMCG, Auto, and Consumer Durables are likely to be in the limelight going forward," Apurva Sheth Head of Market Perspective & Research said.

On the expectations, Mehta Equities had pegged an increase in defense budget from Rs 6.22 lakh crore last year. A higher allocation could have benefitted HAL, BEL and Data Patterns in its view.


The market mood faded post the budget speech as the headline index gave up their morning gains.

The BSE Sensex was down by 199.71 points or 0.26% and trading at 77,300.86 around this time. The broader Nifty index was trading at 23,425, falling by -83.40 points or 0.35%.

This was Finance Minister Nirmala Sitharaman's 8th budget speech and her second in the Modi 3.0 government.

Also Read: Budget 2025 stocks: Shipping Corporation, Mazagon Dock jump up to 6% after FM announces sector revamp

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