Defence Stocks Rally for Seventh-Straight Session; Mazagon Dock, BEL and Bharat Dynamics Hit All-Time Highs

Several defence stocks like Cochin Shipyard, Mazagon Dock Shipbuilders, Garden Reach Shipbuilders, and BEL reported a consistent rally in today’s trading session.

Rallying for the seventh consecutive session, Nifty Defence index soared 3% to clock day’s high of 8,555, up 3%, about 24% cumulatively.

In recent weeks, defence stocks have remained the center of attention among investors. As per the reports, the centre is set to increase defence spending amid heightened tensions with Pakistan.

In today’s session, Data Patterns (India) went up by 8% to ₹243.90 apiece. Meanwhile, shares of Paras Defence and Space Technologies, Zen Technologies, IdeaForge Technology, MTAR Technologies, Bharat Electronics, Apollo Micro Systems, Bharat Dynamics, Astra Microwave Products, and HAL soared about 5%.

The rally in defence stocks can be attributed to ‘Operation Sindoor’ wherein India conducted strikes across Pakistan and Pakistan-occupied Kashmir (PoK) on May 7. This showcased the strength of the country's indigenously developed defence systems, which not only helped in destroying terror camps across the border but also intercepted drones and missiles launched by Pakistan.

Shipbuilding stocks: Should you buy?

In the recent rally, investors bet big on shipbuilding stocks. Cochin Shipyard’s share soared 8% in early trade, clocking an 8-month high of ₹2,195 apiece. As of now, the stock rallied by 29% in May.

Shares of Mazagon Dock Shipbuilders were up 6% to reach all-time-high of ₹3,737. Similarly, Garden Reach Shipbuilders gained for the eighth straight session, reaching a 9-month high of ₹2,621. The stock gave returns of 30% in May.

Bharat Electronics and Bharat Dynamics also hit their all-time highs today.