All the Major Defence Stocks are in Focus today as the Nifty 50 Index is trading at day’s low, but all the Major Defence Stocks are trading at day’s high even after the Ceasefire has been declared between India and Pakistan, and no Major violations of the ceasefire have taken place following the declaration.
Nifty India Defence Index is up by 4 percent, trading at 7,422, and Major Stocks like BDL is up by 11.10 percent. Zentec is at the 5 percent Upper Circuit mark, BEL is up by 4.40 percent, HAL is up by 4.10 percent, and Mazagon Dock Shipbuilders is up by 4 percent.
Reason for Defence Stock Rally
PM Modi addressed the nation for the first time on the occasion of Budh Purnima, since the operation Sindoor that took place on May 7th. Addressing the Nation, he mentioned that India had never lost to Pakistan in the Battlefield and quoted that “We have proven our dominance in new-age warfare”
Other than the use of Russian, French and Israeli hardware in the defence of India. Indian Defence Companies have been a Key player in the whole standoff between the two countries, and the PM, during the address, stated that the time has come for Made in India Defence equipment. This could have uplifted the sentiment of defence stocks further.
India’s defence companies’ domestic production had reached Rs. 1.27 Lakh Crore in FY24, which is a 174 percent increase from FY15. The surge in domestic production can largely be attributed to several policy reforms and initiatives taken by the Government, like IdeX and SAMARTHYA. 14,000+ items have been indigenised under SRIJAN and 3,000 under Positive Indigenisation Lists.
Further, the Defence budget for India has grown by 2.6x from 2.53 Lakh Crore in FY14 to 6.81 Lakh Crore in FY26. India is aiming for Rs. 3 Lakh Crore in production and Rs. 50,000 Crore in Exports by 2029.
Also read: 20% Upper Circuit: Cable stock skyrockets after announcing 72% YoY profit growth and dividend
What had Happened Earlier
The Pahalgam attack on April 22, 2025, had minimal immediate impact on Indian markets due to its timing near market close. The next day, the market opened strong and closed up 161 points, showing investor confidence. Even after India launched Operation Sindoor on May 7, the market remained stable, closing 35 points higher. This suggests that investors viewed the situation as contained and trusted the government’s response.
Pakistan’s KSE-100 Index showed a sharper reaction, falling 3.13% on May 7 and 5.89% on May 8 after India’s Operation Sindoor. The steep drop followed a 41.7% rally over the past year, fueled by ceasefire optimism. The renewed tension shook investor confidence and triggered a sharp correction.
Written By Abhishek Das
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
