Defence Stocks Rally Up to 4% Amid Reports of Rs 40,000-45,000 Crore Boost to FY26 Capital Outlay

Shares of key defence companies surged as much as 4% in Thursday's session, fueled by media reports suggesting the Indian government is preparing a substantial top-up to the defence budget for FY26 to accelerate major procurement projects. According to ET Now, the Centre is contemplating an additional allocation of Rs 40,000–45,000 crore under the capital budget for the fiscal year ending March 2026, aimed at supporting high-value initiatives in indigenous manufacturing and equipment upgrades. This supplementary funding is slated for approval via parliamentary grants during the upcoming winter session, signaling a proactive push to fortify national security amid evolving geopolitical dynamics. The positive buzz propelled several stocks higher: MTAR Technologies climbed nearly 3%, while

d, autics Ltd (HAL ), ers & Engineers Ltd, and Mazagon Dock Shipbuilders Ltd advanced up to 4% in early trades. Other notable gainers included Bharat Electronics Ltd, Paras Defence and Space Technologies Ltd, and Unimech Aerospace and Manufacturing Ltd, all posting intraday rises. Reflecting the sector-wide enthusiasm, 15 out of the 18 stocks in the Nifty Defence index ended the day in positive territory, underscoring robust investor confidence in the long-term growth trajectory of India's defence ecosystem.