Since the Pahalgam terror assault, which took 26 lives, the market capitalization of the Indian defense industry has increased dramatically, gaining an astounding Rs 86,211 crore.
Following the Indian military’s ‘Operation Sindoor,’ a significant precision strike on terrorist facilities in Pakistan and Pakistan-occupied Kashmir (PoK), the bull rally got underway.
The confidence in defense stocks was greatly increased by this operation, which was India’s biggest tri-service engagement since the war of 1971. Shares of defense businesses rose in spite of the increased geopolitical concerns.
Because of this, the Nifty India Defence Index, which measures the performance of top defense firms, has increased by 9.39% since the military operation began. This is in stark contrast to the benchmark Nifty’s 1.98% gain during the same time frame.
The rally was driven by Paras Defence and Space Technologies Limited, whose share price has increased by about 40% since April 22. According to market data, Garden Reach Shipbuilders and Engineers Limited came in second, gaining more than 28%.
Bharat Dynamics and Mishra Dhatu Nigam Limited both reported impressive results, increasing by more than 26%. With gains of more than 20%, Data Patterns India and DCX Systems are two other noteworthy achievers.
The rise in the industry has also been mirrored in the contributions of significant players to market capitalization. The market value of the industry has increased by Rs 23,683 crore thanks to Bharat Electronics Ltd (BEL), Rs 21,654 crore thanks to Hindustan Aeronautics Ltd (HAL), and Rs 12,345 crore thanks to Bharat Dynamics.
With contributions of Rs 9,971 crore and Rs 6,859 crore, respectively, other businesses like Mazagon Dock Shipbuilders and Solar Industries have also made a substantial contribution to the overall market capitalization growth.
Even though there was some intra-day turbulence in the larger markets on Wednesday, the domestic defense industry continued to perform exceptionally well and draw steady interest from investors.
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