BDL, HAL, Unimech Aerospace Shares Gain Amid Putin's India Visit: Should Investors Bet On Defence Stocks In 2026

The Nifty India Defence index rose as much as 1 per cent on December 4 before trimming some of those gains to end 0.58 per cent higher. The gains came on account of renewed interest in defence counters amid Russian President Vladimir Putin’s two-day visit to India for the 23^rd annual Russia-India summit.

Among key movers, Bharat Dynamics Ltd (BDL) gained 3.03 per cent, while Unimech Aerospace and Manufacturing surged 2.53 per cent. Hindustan Aeronautics Ltd rose 1.36 per cent, Cochin Shipyard advanced 1.11 per cent, and Mazagon Dock Shipbuilders closed 0.92 per cent higher. Bharat Electronics advanced 0.79 per cent, and Paras Defence and Space Technologies gained 0.83 per cent.

Putin and Prime Minister Narendra Modi are expected to sign a number of deals during the visit, including some major defence deals. Putin arrived with Russia’s Defence Minister Andrei Belousov along with other delegates.

Belousov will co-chair the 22nd meeting of the India-Russia Inter-Governmental Commission on Military and Military Technical Cooperation with defence minister Rajnath Singh at the Manekshaw Centre later in the day.

What Putin’s Visit Means For India’s Defence Sector

Russia has been one of India’s main defence partners for more than sixty years. The partnership has heavily influenced India’s military equipment, strategy and defence manufacturing over the decades.

Officials from both countries are expected to review a wide range of ongoing programmes. Air-defence systems, fighter aircraft upgrades and naval cooperation are likely to be at the centre of the discussions. A key item is the next phase of cooperation on the S-400 Triumf system. After its role in Operation Sindoor, the Defence Ministry in October cleared the purchase of additional surface-to-air missiles for the S-400, covering multiple ranges from 120 km to 380 km.

There is also speculation that India may expand its S-400 deployment. New Delhi is reportedly evaluating the purchase of five more regiments, along with the possibility of moving to Russia’s newer S-500 Prometheus system.

Talks may also touch on the Su-57, Russia’s fifth-generation fighter, with India considering the acquisition of at least two squadrons. According to The Print, India is also looking to seal agreements on upgrading its Su-30MKI fleet and extending the range of the BrahMos missile. Russia has additionally offered Sprut light tanks and the Pantsir air-defence system, though no major deals are expected to be finalised during the visit.

Vaqarjaved Khan, CFA, senior fundamental analyst at Angel One, said the 2025 summit has defence cooperation as its top agenda along potential agreements to be done on technology transfer between the two nations.

“If the summit leads to new MoUs, manufacturing pacts or confirmed orders, then strongly placed defence companies can see their next leg of growth,” he said. “If things move forward, a multi-year defence capex cycle can be underway. The defence sector can be a major beneficiary.”