Defence Stocks Today: Garden Reach Ship Builders and Cochin Shipyard and other domestic defence sector stocks extended gains for the fourth straight session on May 14. The Nifty India Defence index surged nearly 5 per cent to an intraday high level of 7,777.6 as 17 out of the 18 constituents of the index closed in the green. At the day-high the Nifty Defence index has rebounded nearly 55 per cent from its recent low of 5,025.35 which it hit on March 3.
Top Nifty Defence Gainers
Garden Reach Shipbuilders & Engineers Ltd shares emerged as the top-gainers among Nifty Defence stocks as they closed higher by over 15 per cent. Other major gainers included Mishra Dhatu Nigam and Cochin Shipyard and DCX India which ended higher by 14.91 per cent on the NSE.
Hindustan Aeronautics Ltd (HAL), Bharat Electronics Ltd and Solar Industries Ltd are top constituents of the Nifty India Defence Index in terms of weightage. The three stocks cumulatively constitute 54.35 per cent of the index in terms of weightage. HAL share price surged over 4 per cent to an intraday high of Rs 4,798 apiece on the NSE. Shares of HAL, Bharat Electronics and Solar Industries closed up to 3.68 per cent higher on the NSE.
Shares of Unimech Aerospace and Manufacturing Ltd, Zen Technologies Ltd, Paras Defence and Space Technologies Ltd closed higher by 5.74 per cent. Other constituents of the index such as Bharat Dynamics Ltd, BEML Ltd, Mtar Technologies Ltd, Data Patterns (India) Ltd, Astra Microwave Products Ltd and Mazagon Dock Shipbuilders Ltd closed higher by up to 3.2 per cent.
What Caused The Rally In Nifty Defence Index
The rally seen in defence stocks follows India’s successful execution of Operation Sindoor and Prime Minister Narendra Modi’s encouragement to the domestic defence industry. Additionally PM Modi’s official dismissal of Pakistan’s claims of destroying Indian aircraft further strengthened investor sentiments. In his first address to the nation following the four-day-long war-like-fight between the two nuclear-armed countries.
"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."
PM Modi also highlighted the need for self-reliance in the defence sector as he praised the domestic defence industry.
“We have proven our dominance in modern warfare,” Modi said. “We have always defeated Pakistan on the battlefield. Today, we’ve demonstrated our superiority again. The time has come for ‘Made in India’ defence equipment. We’ve adopted a zero-tolerance policy towards terrorism.,” Modi said.
Defence stocks are expected to remain in focus amid a push for Indianisation of the defence industry as well as in the wake of recent hostilities between India and Pakistan.
