Shares of key Indian defence stocks experienced mixed trading on Thursday amid positive developments surrounding a new 10-year strategic defence cooperation framework between India and the United States. The agreement aims to strengthen bilateral ties by enabling deeper collaboration on defence technology sharing, co-production of military equipment, and increasing the supply of critical defence systems. 

This landmark pact is expected to significantly boost the growth prospects of India’s defence manufacturing sector, particularly in the context of the government’s ‘Aatmanirbhar Bharat’ (self-reliant India) initiative.

Among the frontline defence companies, Hindustan Aeronautics Ltd  was trading higher at Rs 4,927.30, up Rs 29.00 or 0.59 per cent as of 10:49 am. Investor optimism surrounding HAL reflects confidence in its ability to capitalize on enhanced aerospace and defence contracts arising from the India-US partnership. HAL is a major player in India’s aerospace and defence manufacturing ecosystem, supplying aircraft, helicopters, and other critical components to the Indian armed forces and international customers.

In contrast, Bharat Electronics Ltd recorded a marginal decline of Rs 0.10 or 0.023 per cent, trading at Rs 426.85 at the same time. BEL, known for its electronics and radar systems used in defence and civilian applications, may see longer-term gains as the strategic framework encourages technology transfers and joint development projects with US defence firms.

Bharat Dynamics Ltd witnessed a sharper dip, falling Rs 25.30 or 1.28 per cent to Rs 1,949.90 by 10:50 am. BDL’s focus on missile systems and ammunition manufacturing positions it well to benefit from increased demand for indigenously developed defence products, although short-term market fluctuations reflected cautious investor sentiment.

Analysts believe the India-US defence framework will accelerate joint research, development, and manufacturing efforts, helping India emerge as a key hub in global defence supply chains. The pact is expected to drive substantial growth for leading defence companies such as HAL, BEL, and BDL, boosting their order books and technological capabilities. This initiative is seen as a critical step towards modernizing India’s armed forces and strengthening strategic partnerships in defence manufacturing.