BDL, Zen Tech, BEML, other defence stocks rally over 12%; Here’s why

The NIFTY India Defence index surged as much as 4.57% to hit an intraday high of 7,465. All the 18 shares in the index were trading higher. As of 1:57 pm, the measure of defence shares traded 4.03% higher at 7,425.95.

The surge in defence shares came after Prime Minister Narendra Modi’s address to the nation on Monday, May 12, where he lauded the effectiveness of “Made in India” defence equipment during Operation Sindhoor.

PM Modi said Operation Sindoor against Pakistan is not over and the time has come for 'Made in India' defence equipment.

“India has showcased its excellence in new-age warfare. The time has come for 'Made in India' defence equipment,” he said.

Shares of Bharat Dynamics (BDL) rallied 12.43% to an intra-day high of ₹1,765 per share on the NSE. The stock gained 3.03% over the past week and 13.33% since the beginning of May. The scrip increased by 54.07% on a year-to-date basis.

Zen Technology shares hit their 5% upper circuit at ₹1,550.5 apiece. It rose 1.22% over the last week and 9.47% month-to-date. However, the stock has fallen 36.6% since the beginning of the year.

BEML Ltd stock was trading 4.96% higher at ₹3,350.70 apiece. It fell 4.66% over the past week but has gained 5.8% so far in May. On a year-to-date basis, it has lost 17.88%.

Data Patterns (4.83%), HAL (4.26%), Mazagon Dock (3.91%), GRSE (3.88%), and Cochin Shipbuilders (3.73%) were among the other top gainers on the Nifty India defence gauge.

The Nifty India defence index has surged 4.01% since the beginning of April and 14.27% year-to-date.

India’s in-house defence production reached ₹1.27 lakh, the highest-ever, in FY24. The country produces approximately 65% of its defence equipment domestically, as of today, as against a 65-70% import dependency ten years ago.