BEML's counter is trading below the 5-day, 10-day, 20-day, 30-day, 50-day, 100-day, 150-day and 200-day simple moving averages (SMAs).
SBI Securities said that Union Budget 2026 places a strong emphasis on structural reforms and fiscal discipline, aiming to accelerate and sustain India’s economic growth.
Defence stocks surged sharply ahead of the Union Budget, with the defence index rising nearly 7% in a single session as buying intensified across the sector. BEL emerged as the top gainer, while stocks such as Data Patterns, BEML, Mishra Dhatu Nigam, Solar Industries, Mazagon Dock and MTAR Technologies also posted strong gains. The rally has sparked speculation over possible budgetary support or policy announcements for the defence sector. However, market experts G Chokkalingam, Founder & MD, Equinomics Research caution that similar pre-budget rallies in defence and railways have often cooled off after the budget. With fiscal constraints limiting the scope for a sharp increase in defence outlay, investors are advised to remain stock-specific, evaluate valuations carefully and consider selective profit-booking after the sharp run-up.
Any increase in safety measures in railways would be positive for Kavach system providers. HBL Engineering, Kernex Microsystems, Siemens and CG Power (GG Tronics) are expected to be key beneficiaries of it.
DCX Systems Ltd shares plunged 14.77 per cent to Rs 164.70 apiece in January. Data Patterns (India) Ltd plummeted 12.54 per cent to Rs 2,294.60. BEML tanked 9.56 per cent to Rs 1,682.35.
In a sector note, Nirmal Bang said India's defence allocation has been on a steady upward trajectory and is expected to rise further in the upcoming Union Budget 2026.
Elara suggested an ‘Accumulate’ rating on Bharat Electronics Ltd (BEL) and Bharat Dynamics Ltd (BDL), a ‘Buy’ rating on HAL, BEML and Zen Technologies Ltd, and a ‘Sell’ rating on GRSE.
PL Capital has 'Hold' rating on BEL and BEML and 'Buy' on HAL. It suggested targets of Rs 407 for BEL, Rs 1,982 for BEML and Rs 5,507 for HAL.
Elara Capital sees Q3FY26 order inflows for capital goods (excluding L&T) down 20% YoY, defence inflows 52% lower.
Sharad Avasthi, Head of Research (PCG) at SMIFS, shared his outlook on defense sector stocks, particularly BEL, BDL, HAL, and BEML. He noted that while the long-term potential of defense stocks remains strong, driven by India’s growing role as a defense exporter, stocks like BEL and BDL may now be fairly valued. Avasthi prefers HAL for its strong competitive advantage and higher growth potential, even at expensive valuations, with a 3-5 year view. He also highlighted BEML as a top pick, with a target of ₹2500-2600, citing its unique mix of defense, construction, and mining equipment.
The filing noted that Paras Defence intends to offload its 58.02 per cent equity stake in Ayatti, which comprises 15,20,000 equity shares of face value of Rs 10 each.





