You should buy these defense stocks before Budget 2026

You should buy these defense stocks before Budget 2026

Ahead of the Union Budget on February 1, market experts are recommending investors to consider defense stocks.

The recommendation comes on the back of expectations that Finance Minister Nirmala Sitharaman may announce a significant increase in India's defense budget for FY25-26.

This could be an ideal time to invest in companies such as Hindustan Aeronautics Limited (HAL), Bharat Electronics Limited (BEL), Bharat Dynamics Limited (BDL), Garden Reach Shipbuilders & Engineers Ltd (GRSE), and Paras Defence and Space Technologies.

Defense sector growth to be accelerated by budget support

Pranay Aggarwal, CEO of Stoxkart, said that the defense sector's growth can be accelerated with stronger budget support for indigenization and exports.

He suggested expanding the Positive Indigenization Lists, strengthening the defense industrial corridors with better fiscal incentives and infrastructure.

Aggarwal also emphasized simplifying licensing and export procedures while increasing the allocations for R&D, innovation, and technology transfer as key measures to boost this sector.

Aerospace and defense electronics to benefit most

Aggarwal also highlighted that aerospace and defense electronics are likely to benefit the most from sustained capital expenditure (capex) for aircraft, aero-engines, and Air Force modernization.

He said technology-intensive systems such as surveillance, communications, and electronic warfare would also be beneficiaries of this budgetary support.

Shipbuilding too will continue to benefit from continued support for naval fleet expansion.