Defence Stocks in Focus: BEL, BDL and HAL Rise Ahead of Key DAC Meeting

Shares of prominent defence companies such as Bharat Dynamics Limited (BDL), Bharat Electronics Limited (BEL), and Hindustan Aeronautics Limited (HAL) surged on Friday, December 26, 2025. 

As of the morning session (10:40 AM), BDL was trading at ₹1,511.20, up ₹30 or 2.03% from its previous close of ₹1,481.20. BEL rose 1.43% to ₹405.70 from ₹400.00, while HAL increased 0.95% to ₹4,463.50 from ₹4,421.30. The gains reflect heightened investor sentiment ahead of the Defence Acquisition Council (DAC) meeting scheduled later in the day.

Strategic Significance of the DAC Meeting

The DAC, chaired by Defence Minister Rajnath Singh, is expected to discuss emergency procurement of critical weapons and military equipment. Market observers anticipate that the meeting could fast-track new orders for India’s defence sector, potentially unlocking a fresh pipeline of contracts for domestic manufacturers. 

The final DAC meeting of 2025 is considered one of the most important of the year, with officials likely to clear multiple procurement proposals under urgent operational requirements.

High-Level Participation and Policy Implications

The meeting will see participation from top defence officials, including the Chief of Defence Staff, the three service chiefs, the Defence Secretary, and the DRDO chief. The focus is on enhancing India’s operational preparedness amid evolving regional security challenges. 

Companies engaged in defence manufacturing, technology, and supply-chain integration could benefit directly from approvals and policy updates emanating from the session.

Market Outlook and Investor Sentiment

The announcement of emergency procurement and approvals is expected to provide a positive trigger for defence stocks. Investors are closely monitoring potential order inflows, production ramp-ups, and government initiatives promoting indigenous defence production. The developments are likely to shape market sentiment and set the tone for defence sector activity in early 2026.

Also Read: Best Defence Sector Mutual Funds in December 2025!

Conclusion

The DAC meeting represents a key event for India’s defence industry, with potential approvals likely to accelerate domestic manufacturing and procurement. Defence companies like BDL, BEL, and HAL are positioned to benefit, reflecting a bullish outlook for investors in the sector.

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