Indian defence stocks have experienced a significant surge following the government's announcement of record ₹1.78 lakh crore defence production for fiscal 2026, representing a 15.6% increase from the previous year. As reported by The Economic Times, this growth, driven by policy push and rising global demand, has led to a strong rally in defence companies and the Nifty Defence Index, which is up 23% year-to-date. India's defence production has surged to a record ₹1.78 lakh crore in FY26, nearly quadrupling since 2013-14, fueled by the Aatmanirbhar Bharat program and a record defence budget. This growth signifies the emergence of a robust defence-industrial ecosystem with expanding private sector participation and record exports.
Bharat Electronics shares rose 6% to ₹430, marking a three-week high and building on a 3% gain in the previous session, bringing the total increase to 7% over two days. According to Livemint, the rally follows the government's announcement that India's annual defence production reached a record ₹1.78 lakh crore in FY26, marking a 15.4% increase from the previous fiscal year. The stock's month-to-date gain has expanded to 4% as it attempts to recover from last month's losses. Between March 2023 and July 2024, the stock delivered a massive 216% return during an uninterrupted bull run, while on an annual basis, the stock has delivered positive returns in each of the last seven years.
According to the Ministry of Defence, Defence Public Sector Undertakings (DPSUs) and other public-sector entities accounted for around 76% of total defence production in FY26, while the private sector contributed the remaining 24%. Defence production has surged 125% since FY20, when it stood at ₹79,071 crore. India's defence exports also recorded robust growth, surging 63% YoY to ₹38,400 crore in FY26 from ₹23,622 crore in FY25. The government is now targeting annual defence exports of ₹50,000 crore by 2029, further expanding India's global defence footprint. Demand for the BrahMos missile surged after it played a key role in Operation Sindoor, targeting Pakistani military infrastructure.
According to The Times of India, Aakash K Hindocha, Vice President - Research at Nuvama Professional Clients Group/Nuvama Wealth Management, has recommended three stocks for buying on June 15, 2026. Bharat Electronics (BEL) is recommended with a buy price of ₹419.85, stop loss at ₹400, and target of ₹470. Canara Bank is suggested at ₹135.24 with stop loss at ₹129.50 and target of ₹148. TVS Motor Company is recommended at ₹3448.70 with stop loss at ₹3300 and target of ₹3760. Meanwhile, Motilal Oswal Financial Services maintains its positive stance on the defence sector, with Bharat Electronics (BEL) as its preferred pick among defence stocks, targeting ₹510.
According to the technical analysis shared by Nuvama Professional Clients Group, BEL has broken out of a tight falling channel after consolidating for two months, with prices jumping to recapture the 200-day moving average. Canara Bank is positioned in a tight pennant pattern for 1.5 months with ADX at 10 historically signaling reversals. TVS Motor Company has shown strong demand from ₹3300 levels since March 2026, with RSI improving above 50 indicating potential upside momentum toward ₹3760 levels. The defence sector's strong performance is expected to continue as India's defence production momentum builds on the record spending announcement, with the Nifty India Defence index gaining 8.85% in five sessions and jumping 23% on a year-to-date basis.
