India’s defence capex leaves 69% for FY27 second half
India’s defence capex rose 37% year on year in the first five months of FY27, but 69% of the ₹2.19 lakh crore allocation remained unused. OI Charts data showed long build-up in Bharat Electronics and Hindustan Aeronautics, while Larsen & Toubro saw short covering.
pre-market1 source ↓machine-written, see hownot a recommendation
- BEL close
- ₹368.15
- On the day
- +0.23%
- Futures OI, long build-up
- +3.6%
- Put-call ratio
- 0.68
- Max pain
- ₹390.00
India’s defence capital expenditure rose 37% year on year in the first five months of FY27, but only 31% of the full-year budget estimate had been utilised by the end of the period. The figures, cited from Kotak Institutional Equities’ 4 Oct 2026 report, leave 69% of the allocation to be spent during the remaining months of FY27. The spending pace therefore becomes a key variable for defence manufacturers and engineering companies ⚔️.
₹2.19 lakh cr allocation is at the centre of the government’s modernisation programme. Capital expenditure can support procurement of aircraft, missiles, radars, electronic warfare systems, ships and submarines, with the eventual market impact depending on approvals, tendering and contract awards rather than budget allocation alone.
Key points:
• Bharat Electronics closed at ₹368.15 on 9 Oct 2026, up 0.2% over one session but down 9.3% over 20 sessions. Its futures open interest rose 3.6%, indicating a long build-up, while the put-call ratio stood at 0.68. OI Charts data showed the largest call and put open interest at ₹400, with max pain at ₹390 for the 27 Oct expiry.
• Hindustan Aeronautics closed at ₹4,656, up 0.2% on the day and 6.9% below its 20-session level. Futures open interest increased 0.5% in a long build-up. The put-call ratio was 0.83, with the largest call open interest at ₹5,000, the largest put open interest at ₹4,600 and max pain at ₹4,750.
• Larsen & Toubro advanced 2.2% to ₹3,703, while its futures open interest fell 1.3%, signalling short covering. Its put-call ratio was 0.87, and the largest call and put open interest were both at ₹4,000; max pain was ₹3,800.
The positioning shows near-term derivatives support alongside recent weakness in the two defence-focused names. For the sector, the next observable catalysts are procurement approvals, tender releases, contract signatures and the pace of capital spending in the second half of FY27. The ₹400 level for Bharat Electronics, ₹4,600–₹5,000 for Hindustan Aeronautics and ₹4,000 for Larsen & Toubro are the key option-interest zones to monitor
Source: The Financial Express, 10 Oct 2026
Not investment advice. For informational purposes only.