Defence stocks surge up to 10 pc as Index rises for 6th straight session

Mumbai, May 28 (IANS) Defence stocks in India saw a strong rally on Wednesday with the Nifty India Defence index rising nearly 1 per cent to trade above 8,715.

This marks the sixth straight day of gains for the index, even as broader markets remained volatile.

The top performer on the index was Unimech Aerospace and Manufacturing, whose shares surged 10 per cent to hit the upper circuit at Rs 1,179.50.

Another major gainer was Astra Microwave Products, whose shares jumped 7 per cent to trade at Rs 1,169.

Zen Technologies shares were also locked in the upper circuit after a 5 per cent jump to Rs 2,013.60.

Shares of Garden Reach Shipbuilders and Engineers (GRSE) and Cochin Shipyard went up around 2 per cent, while Solar Industries and Bharat Electronics (BEL) rose over 1.3 per cent.

Data Patterns shares also climbed more than 1 per cent.

Other stocks like Mishra Dhatu Nigam (Midhani), Mazagon Dock Shipbuilders, and MTAR Technologies also traded with slight gains.

However, some defence stocks closed the intra-day trading session lower. Major players like Hindustan Aeronautics Limited (HAL) and Paras Defence slipped slightly into the red.

Bharat Dynamics (BDL) and BEML dropped by over 2 per cent each. The biggest loser on the index was DCX India, which fell more than 6 per cent to Rs 314 per share.

In recent days, defence stocks have seen high volatility, especially after the success of Operation Sindoor, which sparked renewed interest in indigenous defence production.

The Indian government has been promoting ‘Make in India’ defence equipment, and Prime Minister Narendra Modi recently praised the role of locally made weapons in the operation, calling it a symbol of India’s self-reliance.

Analysts say the sector remains attractive due to increasing government spending, growing export interest and strong sentiment around local manufacturing.

Meanwhile, the Indian stock market closed in the red on Wednesday for the second consecutive day amid prevailing premium valuations and mixed global cues.

--IANS

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