Defence stocks are experiencing a notable surge as India embarks on Operation Sindoor, a strategic response launched just two weeks after the tragic Pahalgam terror attack that resulted in the loss of 26 tourists. This uptick in the defence sector has captured the attention of investors, with Mazagon Dock Shipbuilders witnessing a remarkable increase of over 2%, reaching an intra-day peak of Rs 3,035.30 on the National Stock Exchange.

Defence Sector Stocks on the Rise

The positive momentum isn’t limited to Mazagon Dock. Other key players in the defence market are also enjoying gains:

• Garden Reach Shipbuilders & Engineers saw its stock climb by 2%, hitting Rs 1,868.70.
• Astra Micra shares rose by 1.8%, trading at Rs 847.35.
• Hindustan Aeronautics advanced by 1.6%, now priced at Rs 4,581.
• Paras Defence & Space Technologies emerged as a standout, with shares soaring more than 4% to reach Rs 1,412.50.

Since the April 22 attack in Kashmir, defence stocks have collectively gained approximately $5 billion in market value, reflecting the heightened interest in security and defence amid ongoing geopolitical tensions between India and Pakistan.

Market Trends and Indices

The day began with benchmark indices in the red, but a swift recovery saw them moving into positive territory. As of now:

• The Nifty 50 has increased by 22 points (or 0.09%), positioning it at 24,401.
• The BSE Sensex has gained 77 points, representing a 0.10% rise, now standing at 80,717.71.

Spotlight on Defence Stocks

Paras Defence Performance

The stock of Paras Defence has been particularly impressive, appreciating 5% over the last five trading sessions. In the past month alone, it has delivered a staggering 50% return, with a 30% increase in the last six months. Over the past year, it has skyrocketed by 95%. Recently, the company announced a partnership with HevenDrones, an Israeli leader in drone technology, to produce hydrogen-powered drones within India—an initiative poised to enhance their operational capabilities.

Mazagon Dock Insights

Similarly, Mazagon Dock Shipbuilders has enjoyed a 3.8% rise in the last five days and a remarkable 28% increase in the last month. Over the past six months, it has gained 39%, with an impressive 174% increase year-on-year, making it a multibagger stock.

Other Noteworthy Defence Stocks

Investors should also keep an eye on additional defence stocks such as BEL, BDL, and Garden Reach Shipbuilders, all of which are poised to benefit from the current climate of increased defence spending and geopolitical tension.

In summary, as India strengthens its defence posture through initiatives like Operation Sindoor, the defence sector is likely to remain a focal point for investors looking to capitalize on the growing market dynamics.