Defence stocks rallied up to 12 per cent in early trade on May 13 after Prime Minister Narendra Modi called for 'Made in India' defence equipment. The Nifty India Defence index surged over 4.5 per cent.
Defence stocks are upbeat after PM Modi called for self-reliance in the Defence sector. He said the time has come for 'Made in India' defence equipment
Defence stocks rallied up to 12 per cent in early trade on May 13 after Prime Minister Narendra Modi called for 'Made in India' defence equipment. The Nifty India Defence index surged over 4.5 per cent.
Among the index constituents, Bharat Dynamics (BDL) shares rallied the highest, surging over 12.6 per cent to Rs 1,768.90 apiece on the NSE, surpassing its 11 month high level. Following it, Zen Technologies and BEML shares climbed 5 per cent each. Index heavyweights Hindustan Aeronautics (HAL) and Bharat Electronics (BEL) also gained around 4.5 per cent.
Data Patterns, MTAR Technologies, Astra Microwave Products, Paras Defence and Space Technologies, Unimech Aerospace and Manufacturing, and DCX Systems rose between 3 per cent to 5 per cent.
Shipbuilding stocks like Garden Reach Shipbuilders and Engineers (GRSE), Cochin Shipyard, and Mazagon Dock Shipbuilders also gained above 4 per cent each. Other defence stocks like Solar Industries, Dynamatic Technologies, and Cyient DLM also traded in the green. All the constituents of the Defence index traded higher in early trade.
Apart from the index, Ideaforge Technologies shares surged over 3 per cent, extending gains for the fourth consecutive session. The drone maker's shares have rallied over 42 per cent in the previous four sessions. Drone solutions provider DroneAcharya Aerial Innovations' shares were locked in at 5 per cent upper circuit, extending gains for the fifth straight session. The SME stock has climbed over 25 per cent over the five sessions.
Another defence equipment maker, Apollo Micro Systems, also surged nearly 6 per cent in today's session. Shares of Azad Engineering, which makes engineered precision forged and machined components, also climbed over 5 per cent.
In his first address to the nation after Operation Sindoor, PM Modi said, "Operation Sindoor has added a new dimension. We have demonstrated our capabilities in the deserts and mountains, as well as proven our excellence in new-age warfare."
He further said that Operation Sindoor has proved the genuineness of 'Made in India' defence equipment, adding that the time has come for self-reliance in the defence sector. "Today, the world is witnessing the emergence of "Made in India" defense in 21st-century warfare – the time has come (Aaj duniya dekh rahi hai 21-century ki warfare mein made in India defence - iska samay aa chuka hai)," he said.
Indian Armed Forces had carried out precision military strikes on nine terrorist camps across Pakistan and Pakistan-occupied Kashmir in the intervening night of May 6 and May 7 in response to the Pahalgam attack by the Pakistan-backed terrorists. During the four-day conflict, India deployed a combination of French, Russian, Israeli and indigenous defence equipment.
With India's homegrown defense equipment proving its worth and standing up to the test of battle, there's growing anticipation that international buyers will show increased interest in what India has to offer.
The Nifty India Defence index, which constitutes stocks of 18 companies that broadly cater to the Defence sector, has climbed nearly 10 per cent since April 22, when the deadly Pahalgam attack happened, claiming the lives of 26 innocent Indian citizens.
The index is now trading in an unchartered territory. Defence stocks experienced price corrections from July 2024 to March 2025, where some stocks had corrected even more than 50 per cent. Since April, defence stocks have been witnessing a recovery. From its lowest point in 2025, touched on March 3, the Nifty India Defence index has rebounded over 48 per cent.