Cochin Shipyard, Garden Reach Shipbuilders & Engineers, Mazgaon Dock, Data Patterns, Paras Defence, and other defence-related shares witnessed sharp gains, climbing up to 6% in Wednesday’s sessions, as investor optimism strengthened across the sector.
The Nifty India Defence index saw substantial momentum, jumping 1.3% on October 1. In September, the index jumped by over 5.94%. On Wednesday, the Nifty Defence index was led by key players like Garden Reach Shipbuilders & Engineers, Cochin Shipyard, Paras Defence and Data Patterns, which recorded gains of 2% to 5%.
Why are Defence Stocks Buzzing on October 1?
Defence stocks are rising today due to a combination of major government initiatives and defence orders.
The Union Cabinet approved a ₹69,725 crore package to revitalise India’s shipbuilding sector, aiming to strengthen domestic capacity, promote shipyard development, provide long-term financing, and enhance technical capabilities. Key schemes include the Shipbuilding Financial Assistance Scheme (₹24,736 crore), the Maritime Development Fund (₹25,000 crore), and the Shipbuilding Development Scheme (₹19,989 crore), all designed to boost indigenous shipbuilding and reduce dependence on foreign vessels.
The Indian Army issued a tender worth nearly ₹30,000 crore for the indigenous ‘Anant Shastra’ surface-to-air missile system (QRSAM), with BEL as the lead integrator. The system can engage fighter aircraft, drones, and helicopters at ranges of 30–40 km and altitudes up to 10 km, complementing existing defence systems along sensitive borders.
Meanwhile, Hindustan Aeronautics Limited (HAL) received the fourth GE-F404-IN20 engine for the LCA Mark 1A fighter jets, as part of India’s plan to induct 83 jets, with proposals for 97 more underway. With full-scale production expected to reach 30 jets per year by 2026–27, these developments indicate strong demand for defence manufacturing.
Combined with government spending and strategic initiatives, these factors have pushed defence stocks higher today.
GRSE, Cochin Shipyard, Mazgaon Dock Share Price Gains Up to 5%
Garden Reach Shipbuilders & Engineers share price surged 5.13% to ₹2,658.90, gaining ₹113 from the previous close of ₹2,529.10. Traders pushed the stock toward the day's high of ₹2,746 on a volume of 2.67 million shares.
Cochin Shipyard rose 3.18% to ₹1,858.70, up ₹65.20. The stock tested a high of ₹1,929.90 on 3.61 million shares. The stock price has bounced back from 150-DEMA.
Mazagon Dock Shipbuilders Ltd advanced 2.92% to ₹2,842, up ₹69 from Tuesday’s close. It touched a high of ₹2,874.70 with a modest volume of 1.17 million shares. The stock price of the company has surged by over 33% in the last 12 months.
In summary, defence stocks are rallying as investors factor in the ₹69,725 crore shipbuilding package, fresh missile system orders, and HAL’s progress on fighter jet production, all of which highlight strong government backing and rising demand in the sector.
