Latest news with #NiftyDefence
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Business Standard
3 days ago
- Business
- Business Standard
GRSE, BDL among 9 defence stocks up over 70% in 2 mths; time to book gains?
Shares of Indian defence-related companies have witnessed a spectacular bull-run on the BSE and the NSE in the last two months, with the success of ' Operation Sindoor ' adding fire-power to already pumped-up shares in the month of May. The NSE Nifty Defence index has zoomed as much as 59 per cent from its April 7 low of 5,645 to the current 8,970 levels. In comparison, the NSE Nifty 50 index has gained 14 per cent in the same period. Among the Nifty Defence constituents - 50 per cent of the stocks i.e. 9 out of the 18 defence shares have zoomed more than 70 per cent in the last two months, shows ACE Equity data. Garden Reach Shipbuilders & Engineers (GRSE) is the top mover, the stock has soared 138 per cent. It is followed by Data Patterns (India), which has zoomed 114 per cent. Paras Defence And Space Technologies, Astra Microwave Products, Mishra Dhatu Nigam (Midhani), BEML, Bharat Dynamics (BDL), Cochin Shipyard and Solar Industries India are the other 7 stocks, up in the range of 70 - 98 per cent. Given the recent sharp rally, analysts recommend it won't be a bad idea to take home some profit off the table, but remain optimistic of the future growth prospects. Kranthi Bathini, director - equity strategy at WealthMills Securities says that defence stocks seem to be fully priced-in at current levels; hence taking some profits from the medium-to-short term seems advisable. On the downside, these stocks could correct between 15-20 per cent, the analyst said. However, the long-term outlook for defence stocks remains upbeat given India's focus on domestic manufacturing, coupled the with export market. The order book and earnings visibility looks very good for these companies, Kranthi added. That apart, post Operation Sindoor, analysts believe the Indian government may increase Budget outlay for the defence sector. Reports indicate that India's defence budget may receive an additional allocation of ₹50,000 crore under a supplementary budget. In the Union Budget presented on February 1, Finance Minister Nirmala Sitharaman had earmarked a record ₹6.81 trillion for the defence sector for FY26, an increase of 9.2 per cent when compared to the budget allotment of ₹6.22 trillion in FY25.
India Today
20-05-2025
- Business
- India Today
Is the defence stock party over? Here's what investors need to know
The rally in defence stocks on Dalal Street came to a halt, with shares across the sector falling on Tuesday due to profit booking and concerns over high prices. This comes after a strong rally that pushed many defence stocks to record of Paras Defence and Cochin Shipyard dropped more than 6% each during the day. The broader Nifty India Defence index was also down by 1.4% around 11:50 am. This was the second day in a row that defence stocks saw a fall, following several weeks of recent fall in defence shares has come after a steep rise. Since February, the total market value of defence companies has jumped by almost 50%, reaching around Rs 11.2 lakh crore by mid-May. This surge was driven by hopes linked to 'Operation Sindoor' and growing interest in India's local defence further back, the Nifty Defence index has risen by 350% between July 2022 and July 2024. However, by February 2025, the index had dropped 38% as the market became cautious. Operation Sindoor gave new life to defence stocks, sparking another rally over the past few Bathini, Equity Strategist at WealthMills Securities Pvt Ltd, the recent rise in defence stocks has been sharp and fast."Defence stocks have rallied strongly and there is a lot of euphoria in defence stocks. On average, defence stocks have rallied nearly 30 to 40%. So, one can book some profits in the medium to short term, but one can buy on dips further in the defence stocks are concerned. Long term outlook is bullish, but in the medium term, given the kind of rally that we witnessed, it is better to take some profit from the table in defence stocks," he also pointed out that defence shares have gone up quite a bit over the last two weeks."Defence stocks in the last fortnight and last one week have witnessed a stellar rally. Now the stocks are entering into a consolidation zone, we are witnessing some kind of profit booking. All these stocks have rallied nearly 40 to 50 percent from its recent lows," he short-term investors may want to lock in profits, Bathini believes that the long-term story for defence companies remains intact.'They are fairly valued at this point of time. The long-term order book and earning visibility is strong for these defence companies. On a longer-term basis, the defence stocks are going to rally,' he also had advice for those wondering what to do next.'But in the medium to short term, some kind of profit booking is taking place. Investors who made stellar returns in the recent past can take some profit from the table due to the strong rally that we witnessed. But the long-term trend is positive trend. The long-term investors can hold on to their stocks, hold on to their positions. Any dip in defence stocks, definitely it's a buy,' Bathini The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)
Mint
20-05-2025
- Business
- Mint
Defence stocks on a tear: Operation Sindoor, policy push trigger up to 39% rally since May 7. More upside on cards?
Defence stocks in focus: India's defence stocks have been on a strong upward trajectory over the past two weeks, with several counters posting gains of up to 39 per cent since the commencement of Operation Sindoor. Companies such as Garden Reach Shipbuilders & Engineers Ltd (GRSE), Cochin Shipyard Ltd, Mishra Dhatu Nigam Ltd (MIDHANI), Paras Defence and Space Technologies Ltd, Data Patterns (India) Ltd, Bharat Dynamics Ltd (BDL), and Astra Microwave Products Ltd have seen sharp rallies, outperforming broader indices by a wide margin. While the Nifty Defence index surged 18 per cent during this period, the benchmark Nifty 50 advanced a little over 2 per cent. The sharp rally in the defence basket has been attributed to heightened geopolitical tensions between India and Pakistan, and a renewed push by the Prime Minister towards indigenous defence manufacturing and self-reliance in military technology. Market experts believe the surge in defence stocks is being fueled by the overwhelming success of Operation Sindoor, which not only met its strategic objectives but also showcased India's rapidly advancing technological capabilities in warfare. From drone combat and layered air defence to electronic warfare systems, India's indigenously-developed platforms played a central role in the operation, significantly boosting investor sentiment toward the sector. 'India's defence sector has come of age, and how! The seamless integration of hi-tech indigenous systems into national defence was done in a telling manner, and that message has been effectively conveyed both at home and abroad,' said Manoranjan Sharma, Chief Economist, Infomerics Valuation and Ratings. He added that with the Indian military's capabilities firmly established, the prospects for homegrown defence firms have improved markedly. 'Defence stocks are fairly valued considering the competence of Indian products. In the new strategic environment, they are likely to move higher and onwards,' Sharma said. While many investors have rushed to take positions in the booming defence sector, analysts advise a more measured approach. Kotak Institutional Equities, in a recent note, cautioned that the market is once again succumbing to 'irrational exuberance,' with narratives like defence becoming the latest momentum trade. The firm warned that such stories often have a short shelf life and stressed the importance of having a disciplined exit strategy. On the other hand, Antique Broking struck a more optimistic tone. It noted that after a prolonged price correction between July 2024 and March 2025, defence stocks have rebounded sharply in April 2025, aided by geopolitical developments and government order approvals worth ₹ 54,000 crore. The brokerage remains positive on long-term prospects and expects select shipyard stocks to trade at up to 45 times FY27 core earnings. It continues to recommend stocks like Mazagon Dock and GRSE. However, it flagged uncertainties around Cochin Shipyard due to the lack of clarity on India's next aircraft carrier project (IAC-II), which could limit upside in the near term. Vikas Gupta, CEO and Chief Investment Strategist at OmniScience Capital, also advised long-term investors to remain calm and avoid panic buying. 'There is no need for FOMO. Keep a watchlist of high-conviction stocks and sectors, and allocate capital steadily over time,' he said. Stock price data from May 7 highlights the intensity of the rally. Garden Reach Shipbuilders stock has surged nearly 39 per cent, followed closely by Cochin Shipyard and Zen Technologies, each up 36 per cent. MIDHANI rose 33 per cent, while Data Patterns jumped 30 per cent. Astra Microwave Products, Bharat Dynamics, Paras Defence, and Mazagon Dock Shipbuilders gained between 21–29 per cent. Meanwhile, other prominent defence names like BEML, Bharat Electronics, and Hindustan Aeronautics rose over 12 per cent each, contributing to the sector-wide momentum. Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
Mint
19-05-2025
- Business
- Mint
Mazagon Dock, BEL and Bharat Dynamics soar to record highs as defence stocks extend gains to 7th session
Defence stocks, including Cochin Shipyard, Mazagon Dock Shipbuilders, Garden Reach Shipbuilders, and BEL, continued their unwavering rally in Monday's trade (May 19), even as the Indian stock market remained in a tight consolidation range. Today's rally marked the seventh consecutive gain for defence stocks, with the Nifty Defence index rising another 3% to hit a day's high of 8,555, resulting in a cumulative gain of 24%. Investor enthusiasm for these stocks stays upbeat amid expectations that the Indian government may increase defence spending amid heightened tensions with Pakistan. In addition, the March quarter results of defence companies released so far have met analysts' expectations, supporting the ongoing rally on Dalal Street. In today's trade, Data Patterns (India) surged another 8% to ₹ 243.90 apiece. Shares of other defence-related companies such as Paras Defence and Space Technologies, Zen Technologies, IdeaForge Technology, MTAR Technologies, Bharat Electronics, Apollo Micro Systems, Bharat Dynamics, Astra Microwave Products, and HAL also rose by up to 5%. The renewed investor interest in defence stocks after months of sidelines comes after India conducted strikes on terror camps in Pakistan and Pakistan-occupied Kashmir (PoK) on May 7. Dubbed 'Operation Sindoor,' the mission demonstrated the strength of India's indigenously developed defence systems, which not only destroyed key air bases across the border but also successfully intercepted drones and missiles launched by Pakistan. Investor sentiment strengthened further after Prime Minister Narendra Modi reiterated the government's focus on promoting indigenous defence production through the Make in India initiative. Optimism also grew following reports that over a dozen countries have shown interest in purchasing the BrahMos missile system after 'Operation Sindoor'. The heightening tensions have also led to expectations that the Indian government may allocate additional funds to the defence sector beyond what was announced in the Union Budget 2025–26. Additionally, India's locally manufactured defence products are attracting growing global interest, with defence exports surging to a record high of ₹ 23,622 crore in the financial year 2024–25. The government is now aiming for annual exports worth ₹ 50,000 crore by 2029, thus strengthening its global footprint. The Indian government has taken several policy initiatives in recent years and introduced reforms aimed at encouraging indigenous design, development, and manufacturing of defence equipment, thereby promoting self-reliance in the sector. Shipbuilding stocks emerge as preferred bets among investors in the recent sustained rally, with Cochin Shipyard's share price gaining another 8% in early trade today, reaching an 8-month high of ₹ 2,195 apiece. The steady rally has resulted in a 29% gain for the stock so far in May. Mazagon Dock Shipbuilders' share price also extended its winning run for the fifth consecutive trading session today, rising another 6% to record a fresh all-time high of ₹ 3,737, gaining 16% so far this month. Likewise, Garden Reach Shipbuilders' share price has maintained its winning streak for the eighth straight session, reaching a 9-month high of ₹ 2,621 and delivering 30% returns to shareholders in May so far. Other PSU defence stocks, including Bharat Electronics and Bharat Dynamics, also touched fresh record highs in today's session. Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.
Time of India
16-05-2025
- Business
- Time of India
Investor interest in defence stocks soars amid India-Pak military conflict
Mumbai: The India-Pakistan military conflict has reignited investor interest in some of the country's largest defence companies. Shares of Cochin Shipyard , Bharat Dynamics , Mazagon Dock Shipbuilders , and Paras Defence and Space Technologies surged between 10% and 35% since April 22-when the terrorist attack in Pahalgam happened, leading to the fighting between India and Pakistan. Nifty India Defence index went up nearly 13% as investors bet that the government may look to boost defence spending again. "Post the recent cross-border tension between India and Pakistan, defence stocks moved in anticipation that India will have to not only replenish its inventory of equipment but also order new ones to keep up its technological edge," said Mahesh Patil, CIO, Aditya Birla Sun Life AMC . "Owing to this, the likelihood of an increase in defence budget could rise faster over the next few years. In addition, it could also open an opportunity for India to export some of the equipment." Analysts said defence companies have enough on their plates. Antique Stock Broking said between FY22 and FY25, the Defence Acquisition Council (DAC) cleared military procurements worth ₹8.45 lakh crore, which is 3.3 times the value approved three years ago. The brokerage said these approvals are expected to convert into actual orders and business opportunities by FY26 and FY27. Live Events Agencies The government's focus on the sector resulted in one of the strongest rallies in shares of defence companies, with the Nifty Defence index shooting up about 350% between July 2022 and July 2024, when these shares peaked out. Subsequently, the index fell 38% till February-end amid the risk-off sentiment in Indian equities that hit the best performers in the previous years the most. Though the sector prospects remain strong, fund managers are wary about the pace of the rebound in these shares. Agencies "While the long-term structural opportunity in the sector remains intact, there is a disparity between current elevated levels and short-term fundamentals," said Patil. Umeshkumar Mehta, CIO, Samco Mutual Fund, said better visibility on the government's focus on the sector is keeping the valuations elevated for the sector. "In the near term, there might be a sharp elevation in terms of stock prices, but in the longer term, the sector is bound to deliver earnings growth considering the focus of the government in the sector," said Mehta. Antique continues to be positive on Mazagon Dock and Garden Reach Shipbuilders & Engineers (GRSE). On Cochin Shipyard , it said, "The stock price outlook for Cochin Shipyard is closely tied to the ordering of an aircraft carrier (IAC-II) on which there is lack of consensus over the urgency and size of the vessel, driving us to temper our stance on the stock."
