Defence stocks: Shares of defence sector companies surged to new record highs on May 26, as Prime Minister Narendra Modi endorsed "Made in India" defence technologies. The Nifty India Defence index climbed 1.17 per cent, extending gains for the fourth consecutive session.
BEML shares rallied the most among the defence theme, rising 15.5 per cent. It was followed by Data Patterns, Solar Industries India, Unimech Aerospace, and Dynamatic Technologies, all of which gained in the range 3 per cent to 4 per cent. Index heavyweights Hindustan Aeronautics (HAL), Bharat Electronics (BEL), and other defence stocks such as Mazagon Dock Shipbuilders, DCX Systems, and Bharat Dynamics ended the day in green.
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On the other hand, some defence stocks also saw losses. MTAR Technologies, Garden Reach Shipbuilders and Engineers (GRSE), Cochin Shipyard, Astra Microwave Products, Zen Technologies , Paras Defence and Space Technologies, Cyient DLM and Mishra Dhatu Nigam endded the day in red, falling up to 2.9 per cent.
Nifty India Defence Index, which consists of 18 stocks, aims to track the performance of a portfolio of stocks that broadly represent the defence theme.
PM Modi Pushes For Make In India Defence
In the latest edition of his monthly radio show, "Mann ki Baat", aired on April 25, Prime Minister Modi lauded the contribution of indigenously developed defence equipment in the success of 'Operation Sindoor'.
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"This victory is the result of the sweat of our engineers and technicians. Operation Sindoor is a testament to India's blood and sweat. It is an example of the strength of 'Made in India'," he said.
Defence Index Rallies 47 Per Cent Since Operation Sindoor
The rally, which was triggered after Indian armed forces carried out Operation Sindoor, has pushed the Nifty India Defence index higher by 47 per cent from the April 7 low.
Under Operation Sindoor, Indian armed forces carried out precision military strikes on nine terrorist hideouts across Pakistan and Pakistan-occupied Kashmir. What followed was four days of intense cross-border firing, shelling and deadly drone attacks. However, after four days of intense cross-border violence, a ceasefire agreement was reached between the two nuclear-armed nations. These events eventually ignited the fire in defence stocks.
