HAL Share Price: Hindustan Aeronautics, Bharat Electronics And GRSE Push Nifty India Defence Higher By Nearly 5 Per Cent

HAL Share Price: Shares of domestic defence sector companies rallied on April 28 on the NSE. The gains made by Hindustan Aeronautics Ltd, Bharat Electronics Ltd and Solar Industries India Ltd pushed the Nifty India Defence Index higher. The Nifty India Defence Index surged nearly 5 per cent to hit an intraday high at 6957.15 levels. The stocks surged amid rising tensions between India and Pakistan in the aftermath of the terrorrist attack on tourists in Jammu and Kashmir's Pahalgam district.

HAL share price surged nearly 6 per cent to hit an intraday high of Rs 4,439.9 apiece on the NSE. However, at the time of writing, shares of HAL pared the gains to trade at Rs 4,418 apiece, up by 5.28 per cent. Notably, HAL is the most significant constituent of the index in terms of weightage. Other major constituents of the index, such as Bharat Electronics Ltd and Solar Industries India Ltd, also traded higher by 2.8 per cent and 2.62 per cent on the NSE at the time of writing.

As many as 17 out of the 18 constituents of the Nifty India Defence traded in the green. Shares of Paras Defence, Garden Reach Shipbuilders & Engineers Ltd, Data Patterns (India) Ltd gained the most among constituents of the index as they rallied between 7.88 per cent to 10.79 per cent. Other constituents of the index, such as Mishra Dhatu Nigam Ltd, Cochin Shipyard Ltd, and Bharat Dynamics Ltd, also gained between 5.41 per cent and 6.73 per cent.

Why Are Defence Stocks Gaining

Tensions between India and Pakistan have been escalating since April 22, following the Pahalgam terror attack. Notably, India has alleged "cross-border linkages" for the attack. Earlier on April 27, Prime Minister Modi said that the "perpetrators and conspirators" would face the harshest response. The rising tensions have contributed to a strong buying interest in the defence sector.

The rally came after reports of a meeting between Defence Minister Rajnath Singh and Prime Minister Narendra Modi emerged. According to the All India Radio website PM Modi met Singh at his New Delhi residence for a meeting which lasted 40 minutes. Singh is expected to have briefed PM Modi regarding the security situation in Jammu and Kashmir.

Additionally, reports regarding the signing of a Rs 63,000-crore Indo-France deal for the acquisition of 26 Rafale Marine fighter jets also renewed investor interest in the domestic defence sector.

At the time of writing, the Nifty India Defence index traded around 6,891.65 levels, up by 3.78 per cent.