12-05-2025
IdeaForge, Zen Technologies, HAL, BDL, BEL Gain Up To 8%; Why Are Defence Stocks Rallying?
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Defence-related stocks, particularly drone manufacturers, were among the top gainers in Monday's trade; Know why
Defence Stocks Rise: Defence-related stocks, particularly drone manufacturers, were among the top gainers in Monday's trade, driven by a day of calm along the India-Pakistan border following a ceasefire. Investor sentiment was further buoyed by expectations of increased government spending on defence in the coming quarters.
Among the top performers, Ideaforge Technology Ltd surged 6.44% to Rs 493.05, while ZEN Technologies Ltd gained 5% to Rs 1,476.65 on the BSE. Droneacharya Aerial Innovations Ltd also advanced 5% to Rs 71.53, and Data Patterns (India) Ltd rose 4.14% to Rs 2,390.50.
However, Paras Defence and Space Technologies Ltd, which has been leading the recent defence sector rally, declined 4.9% to Rs 1,387. The stock moved out of the short-term ASM (Additional Surveillance Measure) framework starting today, which may have triggered some profit-taking.
Bharat Forge Ltd rose 1.36% to Rs 1,181.90. Reports suggest the government has called for a key meeting with defence manufacturers in Delhi this week, as hinted by CMD Baba Kalyani in a recent CNBC-TV18 interview.
According to JM Financial, while markets may not be significantly impacted by border tensions, 'one cannot rule out further escalation or a prolonged conflict." The firm noted that the Indian economy is now more resilient and better equipped to handle geopolitical stress compared to the past.
Other notable movers included Bharat Dynamics Ltd, which edged up 0.25% to Rs 1,535.05, Bharat Electronics Ltd gaining 0.71% to Rs 318, and BEML Ltd, which advanced 3.71% to Rs 3,172.05.
First Published:
May 12, 2025, 15:14 IST
