Defence stocks fell by 0.17% to 4.05% at 13:15 IST on BSE after Finance Minister Arun Jaitley in Union Budget 2015-16 increased defence budget allocation to Rs 246727 crore.
Meanwhile, the S&P BSE Sensex, was down 292.16 points or 1% to 28,927.96Among defence stocks, Pipavav Defence and Offshore Engineering Company (down 3.36%), Bharat Forge (down 1.16%), Bharat Electronics (down 1.5%), Centum Electronics (down 2.85%), L&T (down 0.77%), Astra Microwave Products (down 4.05%), Punj Lloyd (down 4.03%), BEML (down 0.17%), Taneja Aerospace & Aviation (down 4.12%), and Tata Power Company (down 1.49%) edged lower.
Defence stocks had witnessed rally in the run up to the Union Budget 2-15-16. Finance Minister Arun Jaitley in Union Budget 2015-16 today, 28 February 2015, announced that the requirements for expenditure on defence, internal security and other necessary expenditures are adequately provided. Made in India and the Buy and the make in India policy are being carefully pursued to achieve greater self-sufficiency in the area of defence equipment including air-craft, he added.
So far, the country has been over dependent on imports, with its attendant unwelcome spin-offs. The Government has already permitted foreign direct investment (FDI) in defence so that the Indian-controlled entities also become manufacturers of defence equipments, not only for home, but for export. The government is thus pursuing the Make in India policy to achieve greater self-sufficiency in the area of defence equipment, including aircraft. As against likely expenditure of this year of Rs 222370 crore in financial year ending 2014-15 the budget allocation for 2015-16 is increased to Rs 246727 crore for FY 2015-16, he said.
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