Defence stocks surged on Wednesday after India launched Operation Sindoor, targeting terror camps. Mazagon Dock, Data Patterns, and Cochin Shipyard led gains. Rising tensions boosted hopes of higher defence spending. The Nifty Defence Index surged by 1.95% before turning negative.
Indian defence stocks witnessed notable gains on Wednesday following the launch of Operation Sindoor, a swift military response targeting terror bases across Pakistan and Pakistan-occupied Jammu & Kashmir. The action was taken in retaliation for the recent Pahalgam terror attack and has triggered investor expectations of increased defence expenditure.
The Nifty Defence Index jumped 1.95% in the early trade on May 7. However, the index retreated from the intraday high and was seen trading below the dotted line as of 11:20 AM.
Among the top performers, Mazagon Dock Shipbuilders climbed 4.55% to an intraday high of ₹3,108, with over 54.3 lakhs shares changing hands. Defence electronics firm Data Patterns (India) Ltd. also saw strong interest, advancing 4.33% to ₹2,289.90. Other defence counters joined the upward trend. Cochin Shipyard Ltd added 3.5% to reach an intraday high of ₹1,535, Hindustan Aeronautics Ltd. (HAL) inched up 1.87% to ₹4,591.80, and Bharat Dynamics Ltd. jumped 2.25% to an intraday high of ₹1,562.
Rising geopolitical tensions have led to a view in the market that military spending may go up, possibly leading to new orders for Indian defence companies. Investors are also taking note of the government’s push for local defence production and better preparedness.
On a broader note, the Sensex reversed early losses to gain around 150 points, while the Nifty reclaimed the 24,400 level, supported by strength in defence, auto, and banking sectors.
Disclaimer: The article is for informational purposes only and not investment advice.
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