BEL, BDL HAL and Other Defence Stocks Surged After PM Modi Emphasise on Made in India for Defence Production

On Tuesday, May 13, 2025, Defence stocks rallied sharply with gains nearing 7%, after Prime Minister Narendra Modi highlighted the need for indigenous defence manufacturing in a national address delivered on Monday evening. His speech came in the wake of a temporary pause in military operations between India and Pakistan, underlining that Operation Sindoor is far from over.

PM Modi emphasised the importance of accelerating the development and deployment of homegrown defence technology, stating, “India has demonstrated its strength in modern warfare. The era of ‘Made in India’ defence systems is here.” He reiterated India’s firm stance on counter-terrorism, highlighting a policy of zero tolerance.

Defence Stocks in Focus

In the wake of his remarks, defence stocks saw strong buying interest:

• Bharat Electronics Ltd (BEL) surged 4.39%, reaching an intraday high of ₹337 per share.
• Bharat Dynamics Ltd climbed 6.56% to ₹1,673 apiece.
• Hindustan Aeronautics Ltd (HAL) rose 3.9% to ₹4,617.1.

India’s Defence Production

The Prime Minister’s renewed emphasis on defence self-reliance aligns with India's broader strategy to become a global defence manufacturing hub. According to official data, domestic defence production soared to ₹1.27 lakh crore in FY24 — a 174% leap from FY15 — largely driven by the Make in India initiative.

Exports have also witnessed exponential growth, touching a record ₹21,083 crore in FY24, a thirty-fold rise over the past decade, with Indian defence products now reaching over 100 international markets.

Conclusion

Following the PM Narendra Modi’s address to the nation, the defence stocks in India recorded strong buying interest. The renewed momentum is expected to further boost investor sentiment and policy support for the Indian defence sector in the months ahead.

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