Mumbai: Defence stocks continued their bullish run, with the Nifty India Defence index soaring over 3.3 per cent on the NSE, reaching 8,132.50 in Friday’s intra-day trade. This marks the index’s sixth consecutive session of gains, outperforming the Nifty 50, which declined 0.18 per cent to 25,017. The Defence index has jumped 18 per cent in six days and up to 54 per cent over the past month, far ahead of the 7 per cent rise in the broader market.
Key players such as Bharat Electronics (BEL), Bharat Dynamics (BDL), Mazagon Dock Shipbuilders (MDL), Paras Defence, and Solar Industries hit record highs. Others including Cochin Shipyard, Garden Reach Shipbuilders & Engineers (GRSE), Data Patterns, Zen Technologies, and Hindustan Aeronautics (HAL) posted gains between 3 per cent and 8 per cent.
The ongoing rally is being fuelled by India’s drive toward defence self-reliance. Key growth drivers include rapid import substitution, increased domestic production, and a surge in defence exports. Policies promoting indigenization, support from DRDO innovations, and global collaborations are contributing significantly to the sector’s momentum.
Further boosting sentiment is the strategic success of Operation Sindoor, which showcased India’s military might and the effectiveness of home-grown defence technologies. The operation’s outcome is seen as a testament to India’s growing capability and has reaffirmed investor confidence in defence manufacturing.
Experts, including Dr. Manoranjan Sharma of Infomerics Valuation and Ratings, suggest that the valuation of defence stocks reflects the industry’s demonstrated capability and strong future prospects. However, stock market movements will still depend on a range of macro and micro factors, making exact forecasts challenging.
Defence PSUs and private sector firms are expected to continue benefiting from increased indigenous orders and heightened national security spending, reinforcing the sector’s bullish outlook.
