Data Patterns, Mazagon Dock, BDL shares rise amid ongoing tensions between India and Pakistan

Shares of defence equipment makers were witnessing buying interest in trade on Thursday, May 8, in the aftermath of Operation Sindoor. The measure of defence stocks on the National Stock Exchange - NIFTY India Defence index - rose as much as 1.38% to hit an intraday high of 7,036. As many as 16 shares in the 18-stock index were trading higher.

Data Patterns was top gainer in the NIFTY India Defence index, the stock rose 3.56% to ₹2,235. Mtar Technologies (2.87%), Mazagon Dock (1.91%), Bharat Dynamics (1.89%), Astra Microwave Products (1.28%) and Cyient DLM (1.24%) were also among the gainers from the defence space.

Expectations of growing order book amid ongoing tensions between India and Pakistan after India launched Operation Sindoor to avenge the killing of tourists in Pahalgam on April 22 led to growing investors sentiment, analysts said.

Indian armed forces carried out missile attacks on nine terror targets in Pakistan and Pakistan-occupied Kashmir, including Bahawalpur, which is a major base of the Jaish-e-Mohammad terror outfit.

After the Pahalgam attack, tensions remain at the Line of Control (LoC) between India and Pakistan.

In a high-level meeting with the top defence brass, Prime Minister Modi on April 29 gave the armed forces "complete operational freedom" to decide on the mode, targets and timing of the response to the Pahalgam terror attack. PM Modi also emphasised the national resolve to deal a "crushing blow to terrorism".

Meanwhile, bullish sentiment has been around for defence shares for quite some time now. Defence shares came on investors radar after last month governments of India and France signed an Inter-Governmental Agreement (IGA) for the procurement of 26 Rafale Aircraft (22 Single-Seater and four Twin-Seater) for the Indian Navy.