In his address to the nation on Monday on Operation Sindoor, Modi highlighted the performance of indigenous defence systems
| Photo Credit:
PRASHANT NAKWE
Defence stocks witnessed a significant rally on Tuesday, defying the broader market weakness, after Prime Minister Narendra Modi emphasised the effectiveness of indigenously-produced military equipment during Operation Sindoor. The Nifty India Defence index jumped 4.12 per cent to close at 7,432.40, even as benchmark indices faced heavy selling pressure.
Bharat Dynamics was the top performer in the defence pack, surging 11.47 per cent to close at ₹1,750 per share — marking its biggest single-day gain in a year. Garden Reach Shipbuilders and Engineers (GRSE) and Zen Technologies followed with gains of 5.21 per cent and 5 per cent, respectively.
Other defence sector stocks also posted strong performances, with Bharat Electronics rising 4.06 per cent, Data Patterns advancing 3.94 per cent and Cochin Shipyard climbing 3.82 per cent. Hindustan Aeronautics gained 3.81 per cent to close at ₹4,608.70.
In his address to the nation on Monday on Operation Sindoor, Modi highlighted the performance of indigenous defence systems. “During this operation, the authenticity of our ‘Made in India’ weapons were also proven. Today, the world is witnessing that in 21st-century warfare, the time has come for ‘Made in India’ defence equipment,” he said. He also underlined that Operation Sindoor marked India’s future strategy against terrorism, and said that India has “just suspended” retaliatory action, and future strategy would depend on Pakistan’s response.
This sentiment was echoed during a joint briefing by the DGMOs, where Air Marshal AK Bharti stated, “Our battle-proven systems stood the test of time and take them head on. Another highlight has been the stellar performance of the indigenous air defence system, the Akash system.”
Market analysts were positive on the defence sector’s outlook. Vikas Jain, Head of Research at Reliance Securities, commented: “Expect long-term positive on defence stocks after domestic defense players have shown strong performance in the India-Pakistan geo-political tension. Expect strong overseas order.”
Kranthi Bathini, Director of Equity Strategy at WealthMills Securities, noted that, despite being “pricey,” every dip in defence stocks “can be a buying opportunity for long” term investments. He further explained, “The tailwinds and also the government focus towards defense and making Make in India is the key triggers for defence and also the other thing is right now defence companies have demonstrated their capabilities, so that is also adding some extra interest for defense stocks.”
Bajaj Bajaj Broking Research said, “Defence-related counters saw strong accumulation, buoyed by renewed market enthusiasm around the indigenisation of defence manufacturing and equipment.”
India’s defence exports reached a record ₹23,622 crore in FY25, representing a 12 per cent year-on-year increase. Defence Minister Rajnath Singh has set an ambitious target of ₹50,000 crore in defence exports by 2029.
Published on May 13, 2025
