Indian defense stocks witness ₹1.2L crore surge amid Operation Sindoor
What's the story
Indian defense companies have seen their market capitalization skyrocket, adding ₹1.22 lakh crore in the past 12 trading sessions. Stocks such as Hindustan Aeronautics Ltd (HAL), Bharat Electronics Ltd (BEL), and Mazagon Dock Shipbuilders Ltd have led the surge. Other contributors to this growth include Cochin Shipyard Ltd (the maker of INS Vikrant), Garden Reach Shipbuilders Ltd, Bharat Dynamics Ltd, BEML Ltd, Data Patterns Ltd., and Zen Technologies.
Top performers
Market cap additions and standout performers
The defense stocks have witnessed huge market cap additions since the end of April. HAL topped the list with a 14% surge, adding ₹38,227 crore to its value. BEL closely followed with a 16% jump, adding ₹34,173 crore. Mazagon Dock and Bharat Dynamics also saw healthy growth of 16% and 25%, respectively, while Garden Reach was the top gainer in percentage terms with a whopping 35% jump.
Market response
Defense stocks gain amid border tensions
The recent rally in defense stocks can be attributed to rising tensions between India and Pakistan, especially after the terrorist attack at Pahalgam in Jammu & Kashmir. This resulted in Operation Sindoor, where India's defense system successfully foiled several cross-border attacks. Prime Minister Narendra Modi's emphasis on domestic manufacturing of defense equipment has only added to this rally.
Export growth
India's defense exports on the rise
India's defense exports have also witnessed a sharp increase, reaching ₹23,622 crore in FY 2025. This is a 12% increase from the earlier ₹21,083 crore. The Ministry of Defense has set an ambitious target for defense exports to over 80 countries by 2029. The plan aims for an export value of ₹50,000 crore, which is almost 34 times higher than the FY 2014 figure of ₹686 crore.
Expert opinions
Analysts bullish on defense stocks and capital goods
Jai Bala of cashthechaos.com was also positive on defense stocks, especially Garden Reach Shipyard and HAL. He said the stocks are "definitely looking interesting" and Garden Reach could replicate Mazagon Dock's momentum. Bala also mentioned his interest in ABB and Schaeffler from the capital goods sector, showing a wider optimism about how these companies would perform in the future.