Budget 2026: Why HAL, BEL and other defence stocks are falling even after 18% capex hike

Defence stocks fell sharply after the Union Budget 2026, with the Nifty India Defence index sinking 6% at its lows. Major names such as Paras Defence, Mazagon Dock, Garden Reach Shipbuilders, Bharat Electronics and Bharat Dynamics tumbled as investors reacted to the absence of major policy headline-grabbing announcements for the sector.