Defence Stocks Plunge 5% After Budget; Brokerages Disappointed

• Defence company shares fell by up to 5% in Monday's trading, with the Nifty Defence Index down 1.76%.
• Brokerage firms expressed disappointment over the Union Budget's lack of major policy announcements for the defence sector.
• Hindustan Aeronautics, Bharat Dynamics, and Bharat Electronics saw declines of 3%, 6%, and 0.33% respectively.
• Despite the short-term dip, higher capital expenditure (capex) for defence is expected to secure orders in the medium term.
• The total defence budget for FY27 is 7.6 lakh crore rupees, an 18% year-on-year increase in main defence capex.

Why It Matters: Defence stocks dropped post-budget due to a lack of new policy, despite increased capital expenditure.