Nifty Index Defence Index is up by more than 5 percent and is currently at the 8,272 level, up 5.13 percent. Some top gainers who operate in the Defence segment are Cochin Shipyard with gains of 12.38 percent, GRSE 10.68 percent, Mazdock 8.91 percent, Unimech 7.64 percent, and Data Patterns with 7.14 percent.
In the Past 3 months, the Index has given a cumulative return of 52 percent, with the March month return standing at 24.59 percent, April’s at 11.49 percent, and in this month the index is up by 16 percent. The April and March month’s return of the Index could be attributed to the Stock market’s recovery from its low, but this month’s return is primarily attributed to the conflict between India and Pakistan.
Why the Defence Stocks are Up Today
Talks are going around of a proposal of Rs. 50,000 Crore additional provision through a supplementary budget that could receive approval in the Winter session of the Parliament. This news would have boosted the investor’s sentiment, which was already high, as the Prime Minister has pushed for Make in India Defence equipment following the success of Operation Sindoor.
A Supplementary budget is an extra amount of money approved by the government to cover additional expenses or to finance new services not originally included in the main budget is referred to as a supplementary grant. This provision allows the government to address unforeseen expenditures and ensure the continued functioning of essential services beyond the allocations made in the annual budget.
India’s defence sector has witnessed significant growth, with domestic production reaching Rs. 1.27 lakh crore in FY24—a 174 percent increase since FY15—driven by key government initiatives like iDEX, SAMARTHYA, and indigenisation efforts under SRIJAN and the Positive Indigenisation Lists, covering over 17,000 items.
The defence budget has also expanded 2.6 times, from Rs. 2.53 lakh crore in FY14 to Rs. 6.81 lakh crore projected for FY26. Looking ahead, India targets Rs. 3 lakh crore in defence production and Rs. 50,000 crore in exports by 2029, underlining its push for self-reliance and global competitiveness in defence manufacturing.
What had Happened Earlier
In April 2025, the Pahalgam attack escalated tensions between India and Pakistan. Indian markets react minimally at first and quickly recover, showing confidence in the government’s handling of the situation. Even after India’s military response, markets remain stable, only to fall for 1 day. Since then, markets have surged to trade just 5 percent below the all-time high.
Written By Abhishek Das
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