Indian defence stocks witnessed a sharp rally on Monday, with the Nifty India Defence Index rising nearly 3% intraday, driven by strong buying interest across most constituents. The index touched an intraday high of 7,989.80, reflecting heightened investor optimism toward the sector.
The rally was led by MTAR Technologies, which gained nearly 5%, followed by Solar Industries, Data Patterns, Astra Microwave Products, Bharat Dynamics, and Bharat Electronics, each advancing between 3% and 4%. Other defence counters such as Paras Defence, Hindustan Aeronautics (HAL), BEML, and Garden Reach Shipbuilders & Engineers (GRSE) also traded firmly in the green.
Only a handful of stocks, including Dynamatic Technologies, Mishra Dhatu Nigam, and Unimech Aerospace and Manufacturing, were seen trading lower during the session.
Market participants attributed the surge in defence stocks to a combination of global geopolitical developments and positive domestic policy triggers. Sentiment was buoyed by reports of a US military operation in Venezuela, which raised expectations of increased global defence preparedness and spending, a factor that often boosts defence-related equities.
On the domestic front, investor confidence was further strengthened after the Indian Army signed a ₹293 crore contract with NIBE for rocket manufacturing equipment. In addition, the Defence Acquisition Council (DAC) approved capital procurement proposals worth approximately ₹79,000 crore, signalling a robust pipeline of future defence orders.
The broad-based rally underscores sustained market interest in defence stocks, supported by rising geopolitical uncertainties and continued government focus on strengthening domestic defence manufacturing under long-term procurement programmes.
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