BEL, HAL, GRSE, other defence stocks rally up to 11% ahead of Union Budget 2026. Brokerages weigh in

Brokerage commentary suggests that while the overall fiscal stance is likely to remain disciplined, the composition of government spending could shift meaningfully. Jefferies expects total government capital expenditure to grow by about 12% in FY27 to Rs 12.5 lakh crore, but flags that defence capex may grow much faster—by as much as 25%.