Data Patterns, Paras Defence, Cochin Shipyard shares jump up to 9%: Here is why defence stocks are surging today

Shares of defence firms were soaring high on Monday, April 28, amid geopolitical tensions between India and Pakistan. Market investors are also eyeing two developments related to the sector.

Among them, Defence Minister Rajnath Singh met Prime Minister Narendra Modi to discuss the security preparedness of the country following the attack in Pahalgam. This comes a day after the defence minister met the Chief of General Staff (CDS), General Anil Chauhan, to discuss the key decisions taken up by the military to counter Pakistan.

After the Pahalgam attack, tensions remain at the Line of Control (LoC) between India and Pakistan. Army officials on Monday said that Pakistani troops resorted to unprovoked firing in Jammu and Kashmir's Poonch and Kupwara districts, continuing with their ceasefire violations along the LoC. This was the fourth consecutive night that Pakistan resorted to small-arms fire along the LoC.

On Sunday, Prime Minister Narendra Modi said the "perpetrators and conspirators" of the Pahalgam attack will be "served with the harshest response".

"The whole world stands with 140 crore Indians in our fight against terrorism. I once again assure the affected families that they will get justice, and justice will be done," Modi said in his 'Mann ki Baat' address.

India has taken several measures post the attack, like suspending the Indus Water Treaty, halting activities at the Wagah Border and asking Pakistani citizens to leave the country.

On the other hand, India and France will sign a deal of ₹63,000 crore for 26 new Rafale M fighter jets on Monday. According to reports, the Rafale-M jets include 22 single-seater jets that can operate from aircraft carriers and four twin-seater trainer jets, which are not carrier-compatible. The delivery of the jets will begin in 2028-29 after the contract is signed and is expected to be completed by 2031-32.

Following these developments, defence stocks like Data Patterns, Cochin Shipyard, Bharat Dynamics, Hindustan Aeronautics, and Paras Defence were trading 5-9% higher on Monday.

At the time of writing this article, shares of Data Patterns were trading 8.5% higher at ₹2,264 apiece on the National Stock Exchange.

Shares of Paras Defence jumped almost 11% during the intraday period to ₹1,159.35 apiece. The stock rallied after the company said its board of directors will consider a stock split and the declaration of a dividend on April 30, 2025, along with its financial results for the fourth quarter of FY25.

Other defence stocks like Cochin Shipyard (6.43%), Bharat Electronics (3.02%), Hindustan Aeronautics (5.44%), Bharat Dynamics (6.21%), and Garden Reach Shipbuilders & Engineers (9.52%) were also trading higher on Monday.