Defence stocks surged on Thursday, with the Nifty India Defence index rising 0.94 per cent to 7,005.40 points, as tensions escalated between India and Pakistan following India’s precision strikes on terrorist locations.

Data Patterns led the rally with a 4 per cent jump to ₹2,244.50, while MTAR Technologies climbed 3.66 per cent to ₹1,432.70. Paras Defence & Aerospace gained 2.87 per cent to ₹1,407.90, continuing its strong performance with a 49.13 per cent increase over the past month.

The defence sector gained momentum after Indian Armed Forces conducted strikes on terrorist sites in Pakistan and Pakistan-occupied Kashmir early Wednesday. Pakistan has threatened retaliation, with India reportedly informing foreign envoys that it would respond to any Pakistani action.

Other significant gainers included Cyient DLM (2.86 per cent), Garden Reach Shipbuilders (2.07 per cent), and Mazagon Dock Shipbuilders (1.98 per cent). Established players like Hindustan Aeronautics Limited (HAL) and Bharat Electronics Limited (BEL) showed modest gains of 0.28 per cent and 0.31 per cent, respectively.

Despite the military tension, foreign investors maintained confidence in Indian markets, continuing their buying streak for a fifteenth consecutive session on Wednesday, purchasing ₹450.55 billion ($5.3 billion) worth of stocks during this period.

Market analysts suggest that the current India-Pakistan conflict is unlikely to significantly deter foreign investment in India, which continues to position itself as a safe haven amid global economic uncertainty.

Published on May 8, 2025