Nifty Defence Index Recovers After HAL-Led Fall; BEL Gains on Safran JV Boost

Mumbai | November 25

The Nifty India Defence index edged higher on Tuesday, recovering from Monday’s sharp decline triggered by a steep fall in Hindustan Aeronautics Ltd (HAL). The index was up 0.28% at 7,935.2 by early afternoon, supported by a rebound in Bharat Electronics Ltd (BEL) following the announcement of a major joint venture agreement with France’s Safran Electronics & Defence.

Joint venture with Safran pushes BEL shares today.

Shares of BEL gained as much as 1.88%, hitting an intraday high of ₹411.40 on the NSE after the company signed a Joint Venture Cooperation Agreement (JVCA) with Safran Electronics & Defence (SED) to manufacture the HAMMER (Highly Agile Modular Munition Extended Range) precision-guided air-to-ground weapon in India. The stock last traded around ₹410.40, up 1.63% by 12:07 pm.

Despite falling over 2% in the past five sessions and slipping slightly over the past month, BEL remains one of the strongest performers in the defence pack, up nearly 40% year-to-date and about 7% in the past six months. It has a 52-week high of ₹436, hit on 1 July 2025, and a 52-week low of ₹240.25 on 19 February 2025. BEL’s market capitalisation now stands at ₹1.46 lakh crore.

The JV marks a significant step in strengthening India’s precision-strike capabilities. According to the Ministry of Defence, the proposed entity will be a 50:50 private limited company, responsible for the local manufacturing, supply and maintenance of the HAMMER weapon system for the Indian Air Force and Indian Navy.

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A phased transfer of production is planned, with BEL leading final assembly, testing and quality assurance. The partnership targets up to 60% indigenisation, with key electronic and mechanical sub-assemblies to be produced in India.

The HAMMER system currently used on the Rafale is known for its high accuracy, modular design and adaptability across multiple fighter platforms, including the LCA Tejas.

Cyient DLM and Data Patterns lead today’s defence gainers

Beyond BEL, Cyient DLM emerged as the top performer in the index, rising 2.9% to ₹432.4, while Data Patterns advanced 1.5% to ₹2,984, supported by steady institutional inflows into defence electronics and avionics.

HAL, the stock at the centre of Monday’s selloff, traded mostly unchanged at ₹4,446.6, indicating early stabilisation after yesterday’s volatile session.

Market stabilises after Monday’s 2.5% decline in the Nifty Defence index

Tuesday’s recovery comes after the Nifty Defence index fell more than 2.5% on Monday, its largest single-day decline in over two weeks. The correction followed a near-9% intraday drop in HAL share price after a Tejas fighter jet crashed during a flying display at the Dubai Air Show on 21 November, killing IAF Wing Commander Namansh Syal.

• HAL shares later pared losses but still closed over 3% lower.
  The selloff spread across the defence sector:
• MIDHANI fell over 5%
• BEML, GRSE, Astra Microwave dropped about 4%
• BEL ended more than 3% lower, the biggest Nifty 50 loser on Monday

HAL has since termed the Dubai Tejas crash an “isolated occurrence arising from exceptional circumstances”, assuring that its production schedules, operational commitments and delivery timelines will not be affected.

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Short-term volatility, long-term fundamentals steady

Today’s rebound driven by BEL’s JV news and strength in defence electronics suggests early stabilisation. Analysts continue to expect near-term volatility, with stock moves increasingly tied to aircraft-programme developments, global geopolitical headlines and specific corporate announcements.

However, India’s multi-year defence-capex trajectory remains strong, supported by localisation initiatives, export opportunities and sustained procurement by all three services.