The night of May 7, 2025 may go down in Indian history as the landmark that changed not only the geopolitics of the world, but also the Indian Defence Manufacturing sector.
The use of indigenous technologies and arms and ammunition used in the offensive and defensive manuevers, showcased the might of Indian Defence Sector to the world. The list of countries that are interested in procuring defence equipements from India has been growing ever since, recognising the operational success and technological advancements demonstrated during the operation.
This whole scenario boosted the investors confidence in the Indian Defence Manufacturing companies that are publicly listed. The non stop rally in companies like HAL, BEL etc., post the declaration of Operation Sindoor is a glorious reflection of the potential that this sector holds in India growth story.
- The Nifty Defence Index, gave a rally of 25%, from 6876(low of 7th May) to 8555 (high of 19th May) in just a matter of 12 days.
- HAL, Hindustan Aeronautics Limited, the pioneer of Indian Defence Sector, manufacturer of Tejas, Indian supersonic fighter jet, who also handles the maintenance of Sukhoi Su-30MKI, Jagua, Mirage 2000 and MiG-21 Bison, rallied 17% from 4400 levels to 5100.
- BEL, Bharat Electronics Limited, another titan in this field, that build various Radar and Surveillance systems, and the phenomenon, that is Akash Missile System, gave an outstanding return of 22% (from 305 to all time high level of 373) in 12 days.
- MAZDOCK,Mazagon Dock Shipbuilders Limited, another major player gave a tremendous rally of 33% in the same time period.
- COCHINSHIP, Cochin Shipyard Limited, generated colossal returns of 53%, in just 12 days, a dream come true for investors.
- Other companies like BDL(35%), BEML(29%), GRSE(49%), PARAS(43%) produced enormous returns for investors, in the same timeperiod of two weeks.
- Not only for the stock investors, outstanding results were produced by Mutual Funds that were focused on defence theme.
This extraordinary growth in these stocks in such a short period of time, has nudged the investors to book some profits, resulting in a correction, that is part and parcel of stock market. This retracement in price can certainly be seen as an opportunity to invest in the Indian Defence Sector Growth Story, that has just begun, and has open skies as the limit.
