In a remarkable market rally, Indian defence companies have collectively added ₹1.22 lakh crore to their market capitalization over the past 12 trading sessions. This surge follows the successful execution of Operation Sindoor, a significant military operation by the Indian Armed Forces, and a renewed emphasis on the ‘Atmanirbhar Bharat’ initiative promoting self-reliance in defence manufacturing.
Operation Sindoor: A Catalyst for Market Confidence
Launched in response to the April 22 terrorist attack in Pahalgam, Operation Sindoor showcased India’s advanced military capabilities. The operation involved precision strikes using indigenous weaponry, including BrahMos missiles, Akash surface-to-air missile systems, and Nagastra loitering munitions. These successful deployments have not only demonstrated India’s defence prowess but also bolstered investor confidence in domestic defence manufacturers.
Top Gainers in the Defence Sector
Several key players have led the market surge:
- Hindustan Aeronautics Ltd (HAL): Shares rose by 14%, adding ₹38,227 crore to its market value.
- Bharat Electronics Ltd (BEL): Experienced a 16% increase, contributing ₹34,173 crore.
- Mazagon Dock Shipbuilders: Gained 16%, with a significant uptick in investor interest.
- Bharat Dynamics Ltd (BDL): Saw a 25% rise, reflecting strong performance.
- Garden Reach Shipbuilders & Engineers: Led in percentage growth with a 35% surge.NewsBytes
Other notable contributors include Cochin Shipyard Ltd, BEML Ltd, Data Patterns Ltd, and Zen Technologies.
Government Initiatives and Export Growth
Prime Minister Narendra Modi’s call for increased domestic production of defence equipment has further fueled the sector’s growth. India’s defence exports have reached ₹23,622 crore in FY 2025, marking a 12% increase from the previous year. The Ministry of Defence aims to expand exports to over 80 countries by 2029, targeting an export value of ₹50,000 crore.
Investor Outlook
Analysts remain optimistic about the defence sector’s trajectory, citing strong government support, successful indigenous technology deployment, and increasing global demand for Indian defence products. The recent market performance underscores the sector’s potential as a cornerstone of India’s economic and strategic growth.
