Bharat Dynamics, HAL, BEL, Other Defence Stocks Gain For Second Straight Day - Know Why

BDL Share Price: Domestic defence sector stocks continued to rally for the second straight day as tensions between India and Pakistan intensified. Shares of Bharat Dynamics (BDL) surged over 3 per cent to trade at an intraday high of Rs 1,497.80 apiece on the NSE. Other major gainers included Data Patterns (India) and Mtar Technologies, which traded higher by up to 3.03 per cent on the NSE at the time of writing.

Defence Stocks Today

The Nifty India Defence index gained over 1 per cent to trade at an intraday high level of 7036. Notably, the index has been on a declining spree and has closed lower in the last three sessions.

In today’s trade, the Nifty India Defence was buoyed by the gains made by index heavyweights, such as Hindustan Aeronautics (HAL) and Bharat Electronics (BEL). Shares of the index heavyweights surged up to 1 per cent each to intraday highs of Rs 312.5 apiece and Rs 4,511.8 apiece on the NSE, respectively. Notably, 17 out of the 18 constituents of the index were trading in the green at the time of writing.

Shares of Bharat Dynamics, Paras Defence and Space Technologies, Cyient DLM and Garden Reach Shipbuilders & Engineers were trading higher by up to 2.83 per cent on the NSE at the time of writing.

Shares of Mazagon Dock Shipbuilders, Cochin Shipyard and Unimech Aerospace and Manufacturing were also trading higher up by 2.05 per cent on the NSE. Shares of Astra Microwave Products, Dynamatic Technologies, Mishra Dhatu Nigam and BEML were also trading higher by as much as 2.13 per cent.

Why Are Domestic Defence Stocks Gaining

Defence stocks gained as investors remained focus on the space amid escalating tensions between India and Pakistan. Notably, the index had surged on May 7 as well, but declined towards the close amid profit-booking.

Tensions have been rising between India and Pakistan following the Pahalgam attack on April 22. On May 7, 2025 India struck terrorist infrastructure bases in Pakistan and Pakistan-occupied Jammu and Kashmir (PoK). Notably nine sites were targeted in the retaliatory attack. The attack marks India’s crucial incursion into Pakistani territory since the 1971 Indo-Pak War, which led to the creation of Bangladesh.

Investors are keenly watching as Pakistan has vowed to retaliate over India’s precision strikes, calling it an act of war. On the other hand domestic defence sector companies are seeing continued investor interest in the space on the back of Centre’s push for indigenisation and upgradation of India’s armed forces.

Earlier in April this year, Defence Minister Rajnath Singh had addressed the Defence Conclave 2025 organised by The Week where he projected India’s defence production to exceed Rs 1.6 lakh crore in 2026. “This year, defence production should cross Rs 1.60 lakh crore, while our target is to produce defence equipment worth Rs 3 lakh crore by the year 2029,” Singh had said.