Latest news with #NiftyIndiaDefence
Mint
3 days ago
- Business
- Mint
Defence stocks fire up: Apollo Micro, Zen Tech, Garden Reach among 23 stocks that surged up to 61% in May
Defence stocks in focus: Defence stocks such as Garden Reach Shipbuilders, Paras Defence, Apollo Micro Systems, Cochin Shipyard, and Solar Industries ended May with solid gains, driven by strong demand from Dalal Street investors, positioning the defence sector as the month's top performer. The Nifty India Defence index concluded the month with a rally of 22%, recovering 70% from February lows, making the sector the biggest turnaround champion in 2025. After remaining under pressure for five consecutive months due to valuation concerns, the sector began recovering in March and extended its gains into April. However, a fresh wave of optimism was triggered by the launch of 'Operation Sindoor,' during which India showcased the strength of its indigenously developed defence systems and successfully intercepted drones and missiles launched by Pakistan. Sentiment was further bolstered after Prime Minister Narendra Modi reiterated the government's focus on promoting indigenous defence production under the Make in India initiative. Additionally, strong March quarter earnings, rising order inflows, expectations of expectation of rise in defence spending by the Indian government to further strengthen national security, and growing global demand for India's indigenously manufactured defence products all contributed to a strong rally in defence stocks in the previous month. This stellar performance also pushed the combined market capitalisation of the 18 Nifty India Defence constituents past the ₹ 11 lakh crore mark for the first time, reaching ₹ 11.3 lakh crore. In comparison, the market cap stood at ₹ 10 lakh crore during the same period last year, indicating an increase of over ₹ 1 lakh crore, most of which came in May. In terms of individual counters, Apollo Micro Systems emerged as the top performer among defence stocks in the May rally, delivering over 60% return as it surged from ₹ 117 to ₹ 183 apiece. This also marked the stock's biggest monthly gain since October 2023, when it had posted a 62% return. Drone-related stocks, including ideaForge Technology, DroneAcharya Aerial Innovations, Zen Technologies, RattanIndia Enterprises, and Paras Defence and Space Technologies, also surged up to 50%. Meanwhile, shipbuilding stocks delivered stellar performances as well, with Garden Reach Shipbuilders and Cochin Shipyard gaining 57% and 23%, respectively. Stock Name Returns in May Apollo Micro Systems 60.5% Garden Reach Shipbuiders 57% Zen Technologies 51% Droneacharya Aerial 50% ideaForge Technology 41.2% TechEra Engineering 39.2% Mishra Dhatu Nigam 38% Taneja Aerospace & Aviation 34% NIBE 33.3% Astra Microwave Products 32.4% Bharat Dynamics 32% Rossell Techsys 23.2% Bharat Electronics 22.5% Sika Interplant Systems 22% Cochin Shipyard 22.3% Paras Defence 18% MTAR Technologies 15.5% C2C Advanced Systems 14% Data Patterns (India) 14.6% Mazagon Dock Shipbuiders 13.7% HAL 11% DCX Systems 8% CFF Fluid Control 6% Source: Trendlyne Even though Mazagon Dock Shipbuilders tumbled 8% in today's session, it is still up 15% for the month of May. Other defence counters such as MTAR Technologies, Bharat Electronics, Mishra Dhatu Nigam, Bharat Dynamics, BEML, Astra Microwave, Data Patterns, Dynamatic Technologies, Cyient DLM, and DCX Systems have also seen notable investor interest. The outlook for the defence sector appears promising, as it is increasingly seen as a strong long-term opportunity—bolstered by rising defence budgets, growing export potential, and sustained policy support through initiatives like Make in India and Atmanirbhar Bharat. India's domestically manufactured defence products are gaining global traction, with exports reaching a record high of ₹ 23,622 crore in FY 2024–25. The government now aims to achieve annual defence exports worth ₹ 50,000 crore by 2029, further expanding its global footprint. This year, the government allocated ₹ 6.81 lakh crore to the defence budget. Additionally, reports suggest that an extra ₹ 50,000 crore boost is under consideration, reflecting the sector's strong growth momentum. 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.
News18
4 days ago
- Business
- News18
Nifty Defence Index Up 31% Since Pahalgam Attack; Should You Still Invest? What Experts Say
Stocks Of Defence Sector: Defence stocks have garnered significant interest among investors recently, following a cooling period after an exceptional performance in past 2-3 years. This renewed interest in buying comes amid geopolitical tensions after the Pahalgam terror attack on April 22 and the subsequent Operation Sindoor on May 7-8. Since the Pahalgam terror attack, the Nifty India Defence index has jumped approximately 31%, indicating a positive outlook due to the rising demand for military equipment like missiles and tanks.
Mint
6 days ago
- Business
- Mint
BEL, HAL to Mazagon Dock: Defence stocks rise after Rajnath Singh's nod for 5th generation fighter planes
Defence stocks in focus: Defence stocks, which are already flying high so far this month, witnessed a further leg up on Tuesday, May 27, rising as much as 10% after the government approved the Advanced Medium Combat Aircraft (AMCA) Programme Execution Model. The rise in defence stocks also added to the gains in the Nifty India Defence index, driving it higher for the fifth straight session. The 18 stocks pack added over 1% to hit a fresh record high of 8,728.20 in intraday trade today. So far this month, the index has gained 21%, adding to 11.5% rally seen in April and a 25% jump recorded in March. Garden Reach Ship Builders shares were among the top gainers, rising nearly 5%. Bharat Dynamics, Mazagon Dock, Hindustan Aeronautics and Bharat Electronics (BEL) gained between 0.5% to 3% in intraday deals. Defence Minister Rajnath Singh on Tuesday approved a framework for building the country's most advanced stealth fighter jet. This development holds significance against the backdrop of growing military conflict with Pakistan. According to Ministry of Defence's statement, the recent approval will provide a significant push towards enhancing India's indigenous defence capabilities and fostering a robust domestic aerospace industrial ecosystem. India will partner with a domestic firm for the stealth fighter programme, and companies can bid independently or as a joint venture, the defence ministry said in a statement, adding that the bids would be open for both private and state-owned firms. The project is crucial for the Indian Air Force, whose squadrons of mainly Russian and ex-Soviet aircraft have fallen to 31 from an approved strength of 42 at a time when rival China is expanding its air force rapidly, said a Reuters report. Pakistan has one of China's most advanced warplanes, the J-10, in its arsenal. Investor sentiment toward defence stocks has remains strong, buoyed by expectations of increased government spending in the sector amid rising tensions with Pakistan. Additionally, March quarter earnings from defence companies have largely met analysts' forecasts, lending further support to the ongoing rally on Dalal Street. The renewed interest in defence counters—after a period of relative quiet—was sparked by India's recent airstrikes on terror camps in Pakistan and Pakistan-occupied Kashmir (PoK) on May 7. The operation, dubbed 'Operation Sindoor,' showcased the capabilities of India's indigenously developed defence systems, which not only took out key airbases across the border but also intercepted enemy drones and missiles with precision. According to analysts at IIFL, as quoted by Bloomberg, the sector could outperform others, with strong order visibility and positive sentiment helping sustain premium valuations. Besides increased spending on defense locally, global budgets too are growing, creating export markets for Indian companies, they say. Bharat Electronics is IIFL's top pick by virtue of having the best execution track record among state-owned companies, the Bloomberg report added. (With inputs from agencies) Disclaimer: This story is for educational purposes only. 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.
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Business Standard
6 days ago
- Business
- Business Standard
Defence shares extend rally; GRSE, BEML, BDL gain up to 5% in weak market
Price movement of defence stocks today Shares of defence and its related companies were in demand, and rallied up to 5 per cent on the National Stock Exchange (NSE) in Tuesday's intra-day trade in an otherwise weak market. Garden Reach Shipbuilders & Engineers (GRSE), BEML, Bharat Dynamics (BDL), Mazagon Dock Shipbuilders (MDL), Cochin Shipyard, Hindustan Aeronautics (HAL), Apollo Micro Systems, Paras Defence and Space Technologies, Ideaforge Technology and Bharat Electronics were up in the range of 1 per cent to 5 per cent. The Nifty India Defence index hit a fresh 52-week high of 8,674.05 on the NSE in intra-day trade today. At 09:34 AM; Defence index, the top gainer among sectoral indices, was up 1.4 per cent, as compared to 0.70 per cent decline in the Nifty 50. Stock price of BDL, Data Patterns, Paras Defence zoom over 100% from 3-month lows Share prices of BDL, Data Patterns, GRSE and Paras Defence have seen their market price more-than-double and zoom up to 131 per cent from their respective three-month lows. Zen Technologies, Solar Industries, Mishra Dhatu Nigam, Astra Microwave, BEML, MDL, Ideaforge Technologies, HAL, BEL and Cochin Shipyard rallied between 65 per cent to 95 per cent. What's driving rally in defence stocks According to media reports, after Operation Sindoor, India's defence budget may receive an additional allocation of ₹50,000 crore under a supplementary budget. The boost will take overall defence allocation past ₹7 trillion for the financial year 2025–26. In the Union Budget presented on February 1, Finance Minister Nirmala Sitharaman had already earmarked a record ₹6.81 trillion for the armed forces. This marked a significant 9.2 per cent increase from the ₹6.22 trillion allocated in 2024–25. Meanwhile, the country is witnessing rapid import substitution, increased domestic production, and growing exports, leading to an inflow of higher indigenous orders to defence public sector undertakings (PSUs). Defence industry is advancing steadily towards self-reliance driven by government policies, the Defence Research and Development Organisation (DRDO) innovations and global collaborations. The country is witnessing a rapid import substitution, increased domestic production and growing exports. This push towards indigenization is expected to boost the earnings of both public and private defense companies as many defense public sector undertakings (PSUs) are witnessing good order inflows with higher indigenous percentages. With India achieving all its avowed strategic objectives, Operation Sindoor was an unqualified and unequivocal success; a success in which India's growing technological self-reliance played a pivotal role. Sector Outlook AatmaNirbhar Bharat initiative to boost defence manufacturing in India. The government emphasises on creating an environment to boost the AatmaNirbhar Bharat program in the defence sector and create a level-playing field for private players, including MSMEs, according to Mirae Asset Sharekhan. Further, the hike in foreign direct investment (FDI) to 74 per cent through the automatic route would boost investments. This is likely to boost investments in the space, as foreign players in the defence sector would look at setting up joint ventures to establish defence manufacturing bases in India, considering the ample opportunity with the opening up of the defence sector. The government has also established defence corridors in Tamil Nadu and Uttar Pradesh, which have helped reduce the import dependency, the brokerage firm said.
India Gazette
20-05-2025
- Business
- India Gazette
Indian stocks continue to slump over profit booking; news on US trade deal in focus
New Delhi [India], May 20 (ANI): Indian stock indices slumped for the third straight session, possibly due to continued profit booking, while investors awaited further updates on India-US trade deal negotiations. Commerce Minister Piyush Goyal had 'good discussions' with US Commerce Secretary Howard Lutnick, towards expediting the first tranche of India-US Bilateral Trade Agreement in his ongoing visit to the US. Sensex closed at 81,191.51 points, down 867.91 points or 1.06 per cent, while Nifty closed at 24,684.85 points, down 260.60 points or 1.04 per cent. All the sectoral indices were deep in the red, with auto, FMCG, media, pharma slumping the most. Nifty India Defence slumped 2.4 per cent. Gold, a key indicator of financial sector, was trading at USD 3,238.50 per ounce, up USD 5.00 or 0.15 per cent. Sensex is now some 4,000 points below its all-time high of 85,978 points. 'Among Sectors, all the major sectoral indices registered intraday profit booking at higher levels but Defense, Auto indices lost the most shed over 2 percent. Technically, after a positive open market consistently witnessing selling pressure at higher levels,' said Shrikant Chouhan, Head Equity Research, Kotak Securities. Vinod Nair, Head of Research, Geojit Investments Limited, said, 'With the lack of major positive triggers and prevailing uncertainty over U.S. fiscal stability, investors opted for profit-booking and adopted a cautious stance. Selling pressure was widespread as participants awaited more clarity on the India-U.S. trade agreement. Given the current premium valuations and delays in the trade deal, we foresee a phase of short-term consolidation, which may lead FIIs to scale back their positions in the domestic market.' Indian stock indices soared early last week, supported by the news that the conflict between India and Pakistan had de-escalated after the two Armed forces reached an understanding to stop the military actions. Another shot in the arm came from the easing of trade wars between the US and China. They had agreed to withdraw their previously announced reciprocal tariffs and counter tariffs for an initial period of 90 days. For Indian stock markets, key monitorables going ahead are Q4 GDP numbers and global cues. The official GDP data for Q4 2024-25 is scheduled to be released on May 30 by the National Statistics Office, along with the annual GDP for 2024-25. During the April-June, July-September, and October-December 2024 quarters, the country's economy, in real terms, observed a growth rate of 6.7 per cent, 5.6 per cent, and 6.2 per cent, respectively. As per the second advance estimates of NSO, the country's economy is projected to grow at 6.5 per cent in 2024-25. (ANI)
