New Delhi, Feb. 5 -- Hindustan Aeronautics (HAL) share price declined over 6% in early trade on Thursday, extending the slump to the second session, on reports that the state-owned defence company was not shortlisted to develop and manufacture next-generation fighter jets. The PSU defence stock declined as much as 6.28% to Rs.3,952.00 apiece on the BSE. HAL share price has fallen more than 11% in two sessions.

According to a report by Hindustan Times, HAL has been eliminated from the race to develop India's fifth-generation stealth fighter jet under the Advanced Multirole Combat Aircraft (AMCA) programme.

Analysts believe the development to be negative for Hindustan Aeronautics Ltd, but was largely expected given the company's large ord...