Defence Stocks On Fire As India’s Exports Jump 34x To Rs 23,622 Cr - Top Gainers

Defence Stocks: Defence-related stocks continued to rally strongly on Wednesday as investor interest surged amid heightened geopolitical tensions and India's push for indigenous defence manufacturing. Shares of several defence and aerospace companies, including missile makers and drone manufacturers, posted strong gains, with Mishra Dhatu Nigam leading the pack with a remarkable 15.12% jump on the BSE.

Other notable gainers included Axiscades Technologies, which rose 5%, Paras Defence which gained 4%, and Hindustan Aeronautics Ltd (HAL), up 3.47%. Data Patterns increased by 2.93%, Bharat Electronics Ltd (BEL) added 2.56%, Astra Microwave Products gained 2.26%, and Bharat Dynamics rose 1.16%.

Drone companies also saw investor enthusiasm. Shares of Droneacharya Aerial Innovations climbed 2%, while Ideaforge Technology edged up by 0.86%.

Why Defence Stocks Are Flying?

This sharp rally in defence stocks comes after a fresh escalation in tensions between India and Pakistan. On May 7, India conducted strikes on terror sites in Pakistan under Operation Sindoor, escalating geopolitical concerns in the region. Defence stocks have ended higher consistently since last Friday.

The growing demand for defence shares is also supported by India’s rapid strides in defence exports and manufacturing. According to Defence Minister Rajnath Singh’s office, “India exported defence goods worth Rs 23,622 crore in 2024-25 — a 34-fold rise as against just Rs 686 crore in 2013-14.”

The ministry added that the defence sector is “growing stronger than ever, driven by the spirit of a self-reliant or Atmanirbhar Bharat.”

The government has made significant investments under the ‘Make in India’ and Atmanirbhar Bharat schemes, launching production-linked incentive (PLI) programs to boost domestic manufacturing. These initiatives aim to reduce import dependence, attract global investments, and integrate Indian companies into international supply chains.

Several defence and aerospace hubs have been set up across the country, and many global players have shown interest in transferring critical defence technologies to India. In 2024-25, India exported a wide range of defence items, including arms, ammunition, subsystems, and components to nearly 80 countries, according to Ministry of Defence data.

The government has set an ambitious target of achieving Rs 50,000 crore in annual defence exports by 2029.

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Nifty India Defence Index Surges 30%

The Nifty India Defence index has surged over 30% in the past three months, reflecting strong investor confidence in the long-term potential of the sector. Much of the recent rally has also been driven by the successful display of India’s indigenous defence capabilities during the recent border flare-up.

The performance of public sector defence undertakings (PSUs) has also been encouraging, delivering strong returns to investors in recent years thanks to higher production and growing exports.