The Indian defence industry has seen a dramatic increase in market capitalisation, which has witnessed a whopping rise of Rs 86,211 crore since the devastating Pahalgam terror strike that killed 26 people.
The sector rally picked pace after India commenced 'Operation Sindoor,' a surgical strike against terrorist infrastructure in Pakistan and Pakistan-occupied Kashmir (PoK). The largest tri-service action by India since the 1971 war boosted defence stock confidence, even as geopolitical tensions rose.
The Nifty India Defence Index, which monitors major defence stocks, has appreciated by 9.39% since the initiation of the military action. At variance with this, the benchmark Nifty index has recorded a comparatively much lower appreciation of 1.98% over the same duration.
Paras Defence and Space Technologies Limited took the lead, with its stock price rising by almost 40% since April 22. Garden Reach Shipbuilders and Engineers Limited also experienced significant growth, with stocks rising by over 28%.
Other firms, such as Mishra Dhatu Nigam Limited and Bharat Dynamics, reported good gains, each increasing by over 26%. Data Patterns India and DCX Systems also recorded good returns of over 20%.
The growth in the performance of the sector has been reflected in the contribution to market capitalisation of leading companies. Bharat Electronics Ltd (BEL) has contributed Rs 23,683 crore to the value of the sector, Hindustan Aeronautics Ltd (HAL) and Bharat Dynamics Rs 21,654 crore and Rs 12,345 crore, respectively.
Besides, other stocks like Mazagon Dock Shipbuilders and Solar Industries have also contributed substantially, infusing Rs 9,971 crore and Rs 6,859 crore in the overall market cap of the industry.
The domestic defence industry again shone bright on Wednesday, retaining robust investor interest amid some vagueness in wider market trends.
Read also| India's Defence Budget Surges Over 100% in 11 Years to Strengthen Armed Forces
