Defence stocks face test of nerves as 22% capex lift in Union Budget meets lofty valuations; BEL, HAL, Mazagon Dock top picks

India’s defence stocks enter a volatile phase despite a 22% jump in Budget capex, as valuations run ahead of fundamentals. Brokerages remain bullish on BEL, HAL and Mazagon Dock, citing strong order pipelines and indigenisation tailwinds, but warn that execution risks and lofty expectations could cap near-term upside.