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Why HAL stock crashed 8% today
04 Feb 2026

Shares of Hindustan Aeronautics Limited (HAL) plummeted by a whopping 8% to ₹4,100.15 during Wednesday's trading session.

The fall came after reports emerged that the state-owned defense giant was not shortlisted for developing and manufacturing next-generation fighter jets under the Advanced Multirole Combat Aircraft (AMCA) program.

This marks a major setback for HAL as it has always been India's primary combat aircraft manufacturer.

AMCA program and potential bidders
Program details

The AMCA program is a critical defense project for India.

Along with HAL, other bidders include Tata Advanced Systems Limited, Adani Defense and Aerospace, Larsen & Toubro (L&T) in partnership with Bharat Electronics Limited (BEL), Goodluck India with BrahMos Aerospace Thiruvananthapuram Ltd and Axiscades Technologies, and Bharat Forge Ltd with BEML Ltd and Data Patterns.

The decision to exclude HAL could mean a loss of steady revenue for the company.

Share price movement of HAL
Market reaction

The news of HAL's exclusion from the AMCA program has put pressure on its share price.

The PSU defense stock has fallen over 10% in the last five sessions and 7% in a month. Over six months, it has shed 7.23%, while year-to-date (YTD), it is down by 4.27%.

Despite these short-term losses, HAL's shares have delivered multibagger returns of a whopping 731% over five years.

Technical view on HAL
Expert insights

Hitesh Tailor, a technical research analyst at Choice Broking, said HAL is currently trading around ₹4,235. He noted that the stock is in a retracement phase within its broader long-term uptrend.

On the weekly chart, HAL's shares are moving sideways between ₹4,000 and ₹4,500 with resistance at the 50-week EMA near ₹4,450-₹4,550 range.

The 100-week EMA around ₹4,100 provides critical support to maintain trend structure integrity.