HAL, Other Defence Stocks Surge Up To 4% As Govt Approves Rs 62,000 Crore Tejas Mark 1A Order

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Posted by AI on 2025-08-20 06:04:17 | Last Updated by AI on 2025-08-21 12:18:20

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Indian defence stocks surge post the government's massive nod to the indigenous Tejas Mark 1A program.

Last week, the Cabinet Committee on Security (CCS) cleared the procurement of 73 Tejas Mark 1A fighter jets for the Indian Air Force (IAF), costing Rs 62,000 crore ($8 billion). The massive order instantly boosted several Indian defence stocks, with some surging up to 4%.

The largest beneficiary was Hindustan Aeronautics Limited (HAL), the lead producer of the Tejas fighter jets, whose stock rose 4% to Rs 26.15 on BSE. Other major beneficiaries include defence major Larsen & Toubro (L&T), which rose 2.6% to Rs 138, Bharat Electronics Ltd (BEL) rose 2.2% to Rs 103.40, and Dynamatic Technologies Ltd, a Bengaluru-based defence equipment manufacturer, rose 2% to Rs 497.40.

The Tejas program, strongly backed by the Defence Ministry and the IAF, is seen as a crucial step in India's quest for self-reliance in defence manufacturing. Mouthpiece of the ruling party, BJP MP Subramanian Swamy lauded the decision citing massive savings in foreign exchange and thousands of jobs created. He also stated that "Finally, the CCS has woken up and saved Indian taxpayers and our defence preparedness. This is a huge saving in foreign exchange as well as creating thousands of jobs for our youth and generating revenue for ancillary industries statewide. The opposition parties should not play politics with the national interest and defence preparedness."

Overall, the massive order is a major boost for India's defence manufacturing capabilities and the "Make in India" initiative, signaling a shift towards indigenous production and self-reliance in the crucial sector.

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