Defence stocks surged across the Indian market following heightened tensions between India and Pakistan.
The Nifty Defence index recorded a 4.5% increase, the largest intraday gain in two weeks. Leading the rally were Paras Defence and Space Technologies with an impressive 11.66% jump, Garden Reach Shipbuilders with a 9.17% increase, and Data Patterns at 8.17%. Bharat Electronics Ltd also made headlines, climbing 3.28%.
The surge came in the wake of a terror attack in Jammu and Kashmir’s Pahalgam, which claimed the lives of 26 tourists. Defence Minister Rajnath Singh briefed Prime Minister Narendra Modi on security measures during a critical meeting, further intensifying investor confidence. Reports of India’s anticipated Rs 63,000-crore deal with France to acquire 26 Rafale Marine fighter jets added to the optimism, suggesting potential growth in India’s defence aviation capabilities.
Kranthi Bathini, a market expert, remarked on the long-term viability of defence stocks, highlighting their robust order books and earning visibility. “Investors with medium- to long-term horizons should consider these stocks on dips,” Bathini said.
This rally represents not just investor sentiment but also India’s growing focus on fortifying its defence infrastructure during a geopolitical crisis.
