Defence Stocks Rally As Mishra Dhatu Nigam Leads; Paras Defence, HAL Outliers

Shares of defence companies, including Mishra Dhatu Nigam Ltd., Cochin Shipyard Ltd., Bharat Forge Ltd. and Mazagon Dock Shipbuilders Ltd., rose in trade on Monday, as India-Pakistan tensions de-escalated.

This development follows a ceasefire announcement between India and Pakistan which was confirmed on Saturday, mediated by the US, which had been violated by Pakistan hours within coming into effect.

There was a brief exchange of fire with a suspect at the Nagrota military station, the army confirmed post the ceasefire announcement.

At least 100 terrorists were eliminated in the precision strikes carried out under Operation Sindoor, the Indian military officers said in a press briefing.

"India can be a big exporter of defence equipment going forward," said Porinju Veliyath, the founder and Chief Executive Officer of Equity Intelligence India Ltd., to NDTV Profit. He stated that "Homegrown indigenous capabilities of Indian defence companies have shown tremendous success."

Veliyath also believed that some defence stocks could be comparable to US peers in five to ten years.

Mishra Dhatu Nigam Ltd. shares were up 3.64% at Rs 330.45 as of 09:50 a.m., with Data Patterns (India) Ltd., Cochin Shipyard Ltd. and Bharat Forge Ltd. following suit at 3.48% to Rs 2,375, 2.51% to Rs 1,521.80 and 1.81% to Rs 1,186.70, respectively.

Garden Reach Shipbuilders & Engineers Ltd. also saw a significant rise, climbing 1.23% to Rs 1,817. Mazagon Dock Shipbuilders Ltd. recorded a 1.20% increase, reaching Rs 2,957.10.

MTAR Technologies climbed 0.78% to Rs 1809 per share. Paras Defence And Space Technologies Ltd. and Hindustan Aeronautics Ltd. shares bucked the trend, falling 4.72% to Rs 1,389.70 and 0.40% to Rs 4,481.60, respectively.

The Nifty Defence index had seen a significant jump of 2.99%, reaching 7,301.25 on Monday, as of 9:58 a.m. It opened at 7,299.55.