Garden Reach Shipbuilders, Mazagon Dock Shares Lead Defence Stocks Rally

Defence counters, including Garden Reach Shipbuilders & Engineers Ltd., Mazagon Dock Shipbuilders Ltd., Hindustan Aeronautics Ltd. and Bharat Forge Ltd. rose in early trade on Wednesday, as broader markets traded on a muted note.

This development comes in the wake of rising geopolitical tensions. In the early hours of Wednesday, India had targeted terrorist infrastructures in Pakistan in precision strikes, in response to the Pahalgam terror attacks.

Nine sites, including the JeM headquarters in Bahawalpur and the LeT's in Muridke have been targeted, PTI reported quoting officials. The forces used Kamikaze drones — also known as loitering ammunitions — weapons designed to crash into a target, typically carrying a warhead, according to NDTV.

This details the first tri-service operation undertaken by the country since the 1971 war with Pakistan.

India also announced the official conclusion of the Free Trade Agreement talks with the United Kingdom. The country's leading export segments, including apparel, auto components, carpets and marine products, are set to benefit the most from the agreement signed on Tuesday.

Garden Reach Shipbuilders Ltd. shares were up 4.48% at Rs 1,915 as of 09:34 a.m., with Mazagon Dock Shipbuilders Ltd. and Bharat Forge Ltd. following suit at 1.12% to Rs 3,006.00 and 2.02% to Rs 1,109.30, respectively.

Cochin Shipyard Ltd. also saw a significant rise, climbing 2% to Rs 1,512.30. Mishra Dhatu Nigam Ltd. recorded a 1.72% increase, reaching Rs 310.25, while Hindustan Aeronautics Ltd. rose by 1.59% to Rs 4,579. Bharat Electronics Ltd. also was up 1.08%.

The NSE Nifty PR Defence index rose 0.18%, while the benchmark NSE Nifty 50 was trading 0.08% higher, as of 09:39 a.m.