The Nifty India Defence Index surged over 4% on May 13, 2025, reaching a fresh all-time high despite market correction. The rally was driven by Prime Minister Modi's call for military self-reliance and the success of Operation Sindoor.
The Nifty India Defence Index, designed to track the performance of a portfolio of stocks representing the Defence sector, surged by over 4%, reaching a fresh all-time high on May 13, 2025. This rally comes despite a general correction in the Indian stock markets.
The Defence index and stocks saw an unexpected rally on May 13, largely due to a significant announcement by Prime Minister Narendra Modi. He called for greater military self-reliance, which was highlighted following the launch of Operation Sindoor in response to the April 22 Pahalgam terror attack.
In his address to the nation, PM Modi stated, "Operation Sindoor has added a new dimension. We have displayed our capabilities in the deserts and mountains, proving our superiority in New Age Warfare. The credibility of our Made in India weapons has been validated, and the world is now witnessing the rise of India's defence capabilities in the 21st century."
Defence Stocks Surge Following the Prime Minister’s Speech
Shares of Defence stocks saw significant gains on May 13, with some stocks jumping as much as 8%. As of 1:00 PM, Bharat Dynamics Ltd was the top performer, gaining 8%. Other stocks like Zen Technologies,Mishra Dhatu Nigam, MTAR Technologies, and BEML also saw an increase of over 4% on the same day.
India's defence exports have reached a record high of ₹23,622 crore (approximately US$ 2.76 billion) in the Financial Year (FY) 2024-25, reflecting a significant growth of ₹2,539 crore or 12.04% compared to the previous fiscal year’s exports of ₹21,083 crore.
This increase is largely driven by the Defence Public Sector Undertakings (DPSUs), which saw a remarkable 42.85% growth in exports during FY 2024-25. This growth highlights the increasing global demand for Indian-made defence products and positions India as a crucial player in the global supply chain.
Both the private sector and DPSUs have made substantial contributions to the rise in defence exports. The private sector contributed ₹15,233 crore, while DPSUs contributed ₹8,389 crore in FY 2024-25. In comparison, the figures for FY 2023-24 were ₹15,209 crore for the private sector and ₹5,874 crore for DPSUs.
Defence Minister Shri Rajnath Singh recently stated that under Prime Minister Modi’s leadership, India is on track to meet the ambitious target of increasing defence exports to ₹50,000 crore by 2029.
Disclaimer: The article is for informational purposes only and not investment advice.
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