India-US Defence Deal: Defence stocks like Hindustan Aeronautics Ltd (HAL), BEML, Paras Defence, and Data Patterns started rising fast on Thursday morning after news came out that India and the US agreed on a new 10-year defence framework. This new agreement between both countries focuses on sharing defence technology and increasing the supply of defence-related equipment. .
Companies like Data Patterns (India), Cyient DLM, BEML, HAL, Dynamatic Technologies, Paras Defence and Space Technologies, and Mazagon Dock Shipbuilders gained more than 1% each. These were among the top-performing stocks in the Nifty India Defence index.
The index itself went up by 0.65%, showing that the overall defence market was doing well that day. But not every defence company had a good day. Shares of Bharat Dynamics, Unimech Aerospace and Manufacturing, Astra Microwave Products, Mishra Dhatu Nigam, DCX Systems, and Zen Technologies went down by more than half a % each.
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India-US Security Deal: HAL’s Role
HAL is currently in talks with American company GE Aerospace for a new deal to make F414 jet engines together in India. India’s Defence Minister Singh is pushing to get this deal done quickly.
HAL has some trouble lately due to the delay in the supply of F404 engines from GE Aerospace has caused HAL to miss the deadline for delivering the Tejas Mark 1A fighter jets to the Indian Air Force. This has been a concern, but even then, investor confidence in HAL stayed strong because many believe HAL can take advantage of the new India-US defence partnership and get more contracts in the future.
Defence Manufacturing Push
The announcement about the 10-year defence framework came from the Pentagon. They put out a statement on Wednesday, one day after a phone call between India’s Defence Minister Singh and US Defence Secretary Hegseth. In that call, they both agreed to sign the new defence framework when they meet later this year.
According to News 18, The Pentagon’s statement said, “Secretary Hegseth and Minister Singh agreed to sign the next 10-year US-India Defence Framework when they next meet this year.” It also said that both leaders talked about big US defence sales that are still pending and stressed how important it is for the two countries to work closely in the defence industry. The Pentagon also said, “Secretary Hegseth emphasised the priority the United States places on India as its key defence partner in South Asia.”
They talked about how much progress India and the US have made since the joint statement from February 2025 that was given by President Donald Trump and Prime Minister Narendra Modi. In that same phone call, Singh also asked Hegseth to fast-track the delivery of the GE F404 engines needed for the Tejas Light Combat Aircraft.
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Meanwhilethe Indian government is also pushing for more local defence production. On the same day, the Defence Acquisition Council approved 10 capital acquisition projects, and all of them will be made by Indian companies.
Experts feel that India can soon become an important part of the world’s defence supply chain through this deal. This will also give a big boost to companies like HAL, BEL, and BDL by bringing in more orders and helping them improve their technology.
