Latest news with #DefenceStocksRally
News18
04-07-2025
- Business
- News18
HAL, BEML, Bharat Dynamics, Other Defence Stocks Rally As Govt Approves Rs 1.05 Lakh Cr Orders
Shares of defence companies, including Paras Defence, BEML, HAL, and Bharat Electronics, surged on Friday; Key points for investors Defence Stocks Rally: Shares of defence companies, including Paras Defence, BEML, Hindustan Aeronautics, and Bharat Electronics, surged on Friday after the government approved fresh defence equipment purchases worth Rs 1.05 lakh crore. The move boosted investor sentiment, pushing the Nifty India Defence index up by 1.4%. Paras Defence and Space Technologies led the gains, soaring 8%, while other notable performers included Mishra Dhatu Nigam, Astra Microwave Products, BEML, Unimech Aerospace and Manufacturing, Cochin Shipyard, Bharat Dynamics, Garden Reach Shipbuilders & Engineers, Mazagon Dock Shipbuilders, and BEL — all rising between 1% and 2%. The rally followed the Defence Acquisition Council's (DAC) approval on Thursday of 10 capital acquisition proposals, all of which will be sourced indigenously through Indian vendors. The initiative underscores the government's continued focus on boosting domestic defence manufacturing and self-reliance. The Ministry of Defence has granted Acceptance of Necessity (AoN) for a wide range of defence equipment as part of its fresh procurement drive. This includes the acquisition of Armoured Recovery Vehicles, advanced Electronic Warfare Systems, an Integrated Common Inventory Management System for the Tri-Services, and Surface-to-Air Missiles for the Indian Army, Navy, and Air Force. Defence stocks have witnessed a sharp upward trajectory in recent months, spurred by the government's strategic push to boost self-reliance in defence manufacturing. The emphasis on indigenous production and domestic innovation has created strong investor interest in companies operating in this space. Among the key beneficiaries of the government's latest ₹1.05 lakh crore defence procurement approvals, analysts point to several companies with high growth potential. Bharat Dynamics is expected to benefit significantly due to its leadership in missile manufacturing. Bharat Electronics stands out for its expertise in radar systems and electronic warfare solutions. Cochin Shipyard is likely to gain from new orders related to underwater and autonomous vessels, while Mazagon Dock Shipbuilders could see tailwinds from its ongoing work on destroyers and mine countermeasure vessels. Garden Reach Shipbuilders & Engineers may benefit from anticipated contracts for patrol vessels. Other potential winners include Paras Defence & Space Technologies, Data Patterns, and Astra Microwave Products. These firms are strategically positioned to capture niche opportunities within India's fast-evolving and increasingly self-sufficient defence ecosystem. First Published:
News18
23-06-2025
- Business
- News18
Defence Stocks Fire Up On Escalating West Asia Tensions; Paras Defence, BEL Gain Up To 5%
Last Updated: Defence Stocks Rally: Shares of defence companies surged on June 23 after the US launched strikes on key Iranian nuclear facilities Defence Stocks Rally: Shares of defence companies surged on June 23 after the US launched strikes on key Iranian nuclear facilities, heightening tensions in the Middle East and fuelling expectations of increased defence spending globally. The Nifty Defence index rose nearly 1.7% to hover around 9,037 in morning trade. Zen Technologies and Paras Defence were the top performers, rising up to 5% and trading at around Rs 1,995 and Rs 1,718, respectively. Zen Tech was locked in its upper circuit. Other notable gainers included Astra Microwave, Bharat Electronics (BEL), Garden Reach Shipbuilders (GRSE), and Data Patterns — each gaining over 2%. Mazagon Dock rose nearly 2%, while Cochin Shipyard and DCX India added over 1.5% each. BEL also emerged as the top gainer on the Sensex. Hindustan Aeronautics (HAL), Bharat Dynamics (BDL), and BEML traded with modest gains, while Solar Industries bucked the trend with marginal losses. Meanwhile, drone-tech firm IdeaForge hit the upper circuit with a 10% rally to Rs 631.05. The rally came after former US President Donald Trump announced a successful strike on three of Iran's main nuclear enrichment sites. In a televised address, Trump claimed the facilities had been 'completely obliterated" using bunker-buster bombs and Tomahawk missiles, while also warning Iran of further action if a peace deal is not reached. Israeli Prime Minister Benjamin Netanyahu hailed the move, calling it a 'bold decision" to deny nuclear weapons to a dangerous regime. Though US officials clarified that Washington is not at war with Tehran, the heightened rhetoric added to global market volatility. Indian defence stocks have already been in focus in recent months. In May, India carried out cross-border strikes under 'Operation Sindoor' against terror outfits in Pakistan, boosting investor interest in the sector. The ongoing Russia-Ukraine war has further supported sentiment toward defence plays. However, analysts remain divided. While some expect strong order inflows to continue, others caution that current valuations in the sector may be running ahead of fundamentals. 'Defence stocks have been highly volatile lately, rallying strongly after Operation Sindoor, then seeing profit booking, and now rising again amid Middle East tensions. This reflects a mix of short-term momentum and long-term optimism. Geopolitical risks and a stronger push for domestic defence manufacturing have boosted investor confidence. With India's defence spending at just 1.9% of GDP, there's significant room for long-term growth," said Ajit Mishra, SVP, Research, Religare Broking. 'However, the sharp rally has brought valuation concerns, making near-term volatility likely. Investors should remain selective, focusing on companies with robust order books, sound financials, and strong execution. While the momentum may fluctuate, the long-term outlook for India's defence sector remains structurally attractive in an increasingly uncertain global landscape," he added. Sankhanath Bandyopadhyay, Economist at Infomerics Valuation and Ratings, meanwhile, said, 'Defence stocks look promising due to the ongoing geopolitical tussle between Iran and Israel. Moreover, the Indian government is likely to enhance defence spending from the current ~2 per cent of GDP to 3–4 per cent over the next decade. Further, the government has targeted Rs 25,000 crore in defence exports by 2025–26." He added, 'Investors can focus on export-driven defence stocks with long-term potential. In the current scenario, geopolitical tensions will likely be lingering between different countries, especially as being reflected in rising tensions in the Middle East. Investors should carefully assess the financials and outlook of such stocks before investing, and there should be a judicious mix so that a healthy dividend can also be earned." Disclaimer:Disclaimer: The views and investment tips by experts in this report are their own and not those of the website or its management. Users are advised to check with certified experts before taking any investment decisions.
