HAL, BEML & Paras Defence Stocks Surge as India‑US 10‑Year Defence Framework Nears
Defence stocks like HAL, BEML, Paras Defence, Data Patterns and more gained ~0.6–1% after the Pentagon and Indian Defence Minister agreed on a 10‑year strategic defence framework, boosting expectations for US sales and industrial cooperation
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On July 3, 2025, shares of key Indian defence firms rallied after news broke that India and the United States will formalize a 10-year defence framework. The agreement was confirmed via a Pentagon statement following a phone call between India’s Defence Minister Rajnath Singh and U.S. Defence Secretary Pete Hegseth.
The Nifty India Defence index kicked off 0.65% higher, with standout gainers including HAL, BEML, Paras Defence, Data Patterns, Cyient DLM, Dynamatic Technologies, and Mazagon Dock Shipbuilders—each posting 0.6–1% gains.
Conversely, Bharat Dynamics, Unimech Aerospace, Astra Microwave, Mishra Dhatu Nigam, DCX Systems, and Zen Technologies slipped slightly.
The Pentagon’s release highlighted that Secretary Hegseth and Minister Singh “agreed to sign the next 10‑year US‑India Defence Framework when they next meet this year.” The roadmap includes major pending U.S. weapons sales, enhanced defence industrial collaboration, and joint co-production efforts.
During the conversation, Minister Singh reportedly pressed for faster delivery of GE F404 engines for the Tejas fighter jets and for finalizing a joint GE F414 engine co-production deal with HAL. These developments add to recent tailwinds for defence stocks, including surging exports driven by NATO spending increases and India’s own military procurement plans.
Rally Theme: Defence firms across the board benefited from strategic agreement progress and improved earnings visibility.
Top Gainers: HAL, BEML, Paras Defence, Data Patterns, Cyient DLM, Dynamatic, Mazagon Dock — +0.6–1% on strong sentiment.
Broader Tailwinds: NATO’s 5% defence spending pledge, India’s QRSAM and export wins, plus a robust ₹16T procurement pipeline.
Stock Spotters: Bharat Dynamics, Astra Microwave and Zen Technologies are lagging but may rebound with renewed geopolitical catalysis.
