Bharat Dynamics gains 2%: What's driving defence stock in a weak market?

Defence stock Bharat Dynamics gained nearly 2 per cent in Thursday's intraday trade, defying the weak market sentiment, following an order win by the company. 

 

On the National Stock Exchange, Bharat Dynamics share price rose to the day's high of ₹1,181.50, gaining as much as 1.7 per cent against its last closing price of ₹1,161. As of 11.05 AM, it was trading at 1.2 per cent higher at ₹1,174.70. 

 

Nearly 1.1 million shares of Bharat Dynamics had changed hands so far on BSE and NSE combined.  

Bharat Dynamics' stock has lost 20 per cent so far in 2026 despite a sharp rise in the Nifty India Defence index during this period. In a shorter span of a month, the stock is down 14 per cent. 

 

 

However, its long-term trajectory has been promising. NSE data shows that it has gained 134 per cent in three years and 511 per cent in five years, delivering multibagger gains.

 

Bharat Dynamics order win update

The company in an exchange filing said that it has signed a contract with Ministry of Defence for the supply of Satellite Smart Anti Airfield Weapons (SAT-SAAW) along with associated equipment for Indian Air Force (IAF) with a total cost of ₹810.79 crore under Buy (Indian - Indigenously Designed, Developed and Manufactured) category.  

 

The contract was signed in the presence of Defence Secretary Shri Rajesh Kumar Singh in New Delhi on September 23, 2026, the company said.

 

Emkay on Bharat Dynamics

Domestic brokerage Emkay Global initiated coverage on Bharat Dynamics a day earlier with an 'Add' rating. It said that increasing competition and higher R&D expenditure are expected to put pressure on margins in the near term. Given its premium valuation and mixed execution track record. The brokerage has a target price of ₹1,350 on the stock. 

Harish Jujarey, as the AVP and head of technical equity research at Prithvi Finmart, said that BDL stock price has remained under pressure over the past few weeks, declining close to its March low of 1,095. From these levels, the stock has shown a gradual recovery.  

 

"On the broader chart, the stock continues to trade within a consolidation range. As long as the support at 1,085 holds, the current recovery may extend towards the 50-DMA at 1,265, followed by the 200-DMA at 1,320 levels. Meanwhile, the sharp decline has pushed the RSI into oversold territory, indicating the possibility of further recovery in the near term," he noted.

 

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