Defence sector stocks experienced a significant boost recently, with Mishra Dhatu Nigam Ltd. witnessing an impressive 8% surge in intraday trading on April 28, 2025. This remarkable leap followed the announcement of Dr. S.V.S. Narayana Murty as the new chairman and managing director of the company, a move that has sparked optimism in the defence market. The rally was also fueled by a broader upswing in defence shares across the board.

Leadership Change at Mishra Dhatu Nigam

Dr. S.V.S. Narayana Murty officially took charge as the Chairman and Managing Director on April 28, and his tenure is set to last until December 31, 2029. His appointment was confirmed by the Department of Defence Production under the Ministry of Defence, as communicated in a letter dated April 15, 2025. The notification also outlined that he would receive a pay scale ranging from ₹1,80,000 to ₹3,20,000 (IDA Pattern).

Who is Dr. S.V.S. Narayana Murty?

At 55 years old, Dr. Murty brings a wealth of experience and expertise to Mishra Dhatu Nigam. He holds a B.E. from Andhra University and an M.E. from IISc, Bangalore, along with a Ph.D. in Metallurgical Engineering from IIT-Bombay. His post-doctoral research at the Steel Research Centre in Japan (2003–2006) further solidified his credentials in the field.

• Career Highlights:
  • Joined Vikram Sarabhai Space Centre (VSSC) in 1993, focusing on advanced materials.
  • Previously worked at Liquid Propulsion Systems Centre (LPSC), ISRO, where he specialized in critical materials for India’s space missions.

Dr. Murty’s accolades include prestigious awards like the Young Metallurgist Award (2001) and the Metallurgist of the Year Award (2018) from the Indian government, showcasing his contributions to the field.

Surge in Defence Stocks

The positive momentum in Mishra Dhatu Nigam’s share price was part of a broader trend affecting defence stocks, driven by increasing tensions between India and Pakistan. This situation has created heightened demand for domestic defence capabilities and optimism surrounding potential contract opportunities.

Prashant Tapse, Senior Vice President of Research at Mehta Equities, noted, “The defence sector is reacting to ongoing geopolitical tensions which might prompt an increase in domestic military spending. This sentiment is also bolstered by expectations of rising global defence expenditures, especially in the US and Europe, paving the way for export opportunities.”

Intraday Trading Highlights

On the day of the announcement, Mishra Dhatu Nigam shares opened at ₹296.25, significantly higher than the previous close of ₹290.55. The stock peaked at ₹313.90, reflecting an 8% increase during trading. By 2:05 PM, shares were trading at ₹310.65, marking a 6.92% rise.

In addition to Mishra Dhatu Nigam, other defence stocks such as Paras Defence, Data Patterns, Cochin Shipyard, and Hindustan Aeronautics (HAL) also experienced robust buying activity, with rises between 5-10%.

This surge in defence stocks highlights the sector’s resilience and potential for growth amid challenging geopolitical landscapes, attracting investor interest and confidence.

For more insights on the stock market trends and updates on defence stocks, stay tuned!