The HAL share price came under heavy pressure in the stock market today, sliding sharply after a key development linked to India’s defence manufacturing roadmap.
Shares of Hindustan Aeronautics Limited (HAL) dropped nearly 8% during Wednesday’s trading session, rattling investor sentiment around the PSU defence major. The fall followed reports that HAL was not shortlisted for India’s ambitious Advanced Multirole Combat Aircraft (AMCA) programme.
This unexpected exclusion has raised concerns about HAL’s future role in one of the country’s most strategic defence projects—and the market reacted swiftly.
Market Performance: HAL Share Price Under Pressure
The selling pressure on HAL was visible from the opening bell.
- Opening price: ₹4,220
- Previous close: ₹4,470
- Day’s low: ₹4,100.15
- Intraday fall: Nearly 8%
As the session progressed, the HAL share price slipped further, touching its intraday low and staying under pressure for most of the trading day.
The move stood out in the broader stock market today, especially given HAL’s long-standing position as a core defence PSU.
Main News: Why HAL Share Price Is Falling Today?
The sharp decline in HAL shares followed a report that the company has been eliminated from the AMCA programme bidding process.
According to the report, HAL was not shortlisted to develop and manufacture India’s fifth-generation stealth fighter jet under the AMCA initiative.
This marks a major shift.
For the first time, the state-owned aircraft manufacturer will not be part of one of India’s most critical combat aircraft development programmes.
The development has altered market perception around HAL’s future participation in high-value defence projects, triggering the sell-off seen in the stock market today.
Why the AMCA Programme Matters for HAL?
HAL has historically positioned itself as India’s lead combat aircraft manufacturer.
Being left out of the AMCA programme is significant because:
- The project is long-term and strategic in nature
- It involves large-scale manufacturing and development
- It offers sustained execution visibility over several years
The absence of HAL from the shortlist suggests that the company may miss out on a steady revenue stream tied to one of the country’s most ambitious aerospace initiatives.
This concern appears to have weighed on the HAL share price during Wednesday’s session.
Who Made It to the Shortlist?
As per the report, multiple private-sector and consortium-based players were shortlisted for the programme.
These included:
- Tata Advanced Systems Limited
- Adani Defence and Aerospace
- Larsen & Toubro (L&T) in consortium with Bharat Electronics Limited (BEL)
- Goodluck India with BrahMos Aerospace Thiruvananthapuram Ltd and Axiscades Technologies
- Bharat Forge Ltd along with BEML Ltd and Data Patterns
The absence of HAL from this list stood out, given its legacy role in defence aircraft manufacturing.
How the Selection Process Unfolded?
The Aeronautical Development Agency (ADA) had invited an Expression of Interest (EoI) for the AMCA programme shortly after the defence ministry shared its roadmap to speed up development of the stealth fighter.
Key points from the selection framework:
- The execution model was designed to be competitive
- Both public and private players were given a level playing field
- Shortlisted companies were required to set up manufacturing facilities
- The full development cycle—design to certification—was capped at eight years
The applicants were assessed in multiple stages.
- An initial evaluation was done by a committee of senior DRDO officials
- The findings were reviewed by a panel chaired by Defence Secretary Rajesh Kumar Singh
This process ultimately led to the final shortlist—without HAL.
Company Details: HAL and the Changing Defence Landscape
HAL has long been India’s only fighter aircraft manufacturer and was earlier viewed as a front-runner for the AMCA programme.
In fact, after the defence minister approved the industry partnership model last year, HAL was widely seen as a likely participant.
The latest development signals a shift in how large defence projects may be allocated going forward, with increased participation from private players.
That shift is now reflected in the HAL share price movement seen in the stock market today.
Summary: What Drove the HAL Share Price Fall?
To sum it up:
- HAL share price fell nearly 8% in Wednesday’s session
- The decline followed reports of HAL being excluded from the AMCA shortlist
- The AMCA programme is a strategic, long-term defence project
- Markets reacted to the potential impact on HAL’s future project pipeline
- Selling pressure pushed the stock to a low of ₹4,100.15
The reaction underscores how closely the stock market today is tracking policy decisions and large defence-related developments—especially for PSU stocks like HAL.
Source: Livemint
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