Shares of Defence Firms Continue Rally, Gain Up to 9% Amid Market Optimism
New Delhi, May 15—Defence-related stocks, including those of drone manufacturers and missile system producers, saw another strong day on Thursday, extending their recent rally driven by investor interest and strategic developments.Key gainers included Sika Interplant Systems, which surged 9.26%, followed closely by Astra Microwave Products, which rose 9.23%. Other significant movers were Axiscades Technologies (+5%), Taneja Aerospace & Aviation (+4.99%), Data Patterns (+3.30%), Paras Defence (+3.12%), and Bharat Dynamics, which gained 2.35%.
Defence majors Hindustan Aeronautics and Bharat Electronics also saw upward momentum, climbing 2% and 1.74%, respectively, while Mishra Dhatu Nigam ended 1.55% higher. Drone-focused firm Droneacharya Aerial Innovations registered a 2% gain.
Broader Markets Hit Seven-Month Highs
The broader indices mirrored the sectoral bullishness. The BSE Sensex rallied 1,200.18 points (1.48%) to close at 82,530.74, while the NSE Nifty jumped 395.20 points (1.60%), ending at 25,062.10 – both marking seven-month highs.Operation Sindoor Sparks Strategic Sentiment
Defence stocks have remained in strong demand throughout the week following India's Operation Sindoor, launched on May 7, which targeted terror infrastructure in Pakistan and Pakistan-occupied Kashmir (PoK). The operation came in retaliation for the April 22 Pahalgam terror attack, which claimed 26 lives.The heightened geopolitical tensions and India's assertive military posture have boosted investor confidence in domestic defence manufacturers and technology providers.
Sector Outlook Remains Bullish
“Defence stocks remain in focus, buoyed by strong domestic demand and rising export optimism, having gained nearly 11% this week,” noted Siddhartha Khemka, Head of Research, Wealth Management at Motilal Oswal Financial Services Ltd.The ongoing momentum underscores a robust outlook for India's defence sector, supported by strategic imperatives and growing global interest in indigenous defence technologies.
