Defence stocks are in focus as India launched Operation Sindoor, two weeks after the Pahalgam terror attack that killed 26 tourists. The share price of Mazagon Dock Shipbuilders rose more than 2% to an intra-day high of Rs 3,035.30 on the National Stock Exchange. Similarly, the stock price of Garden Reach Shipbuilders & Engineers increased 2% to Rs 1,868.70. Astra Micra was quoted at Rs 847.35, up 1.8%. The share price of Hindustan Aeronautics advanced 1.6% to Rs 4,581. Paras Defence & Space Technologies’ share price surged the most among defence stocks, gaining more than 4% to Rs 1,412.50.
Other defence stocks were also trading in the green, adding roughly $5 billion in value since the April 22 attack in Kashmir. However, the stocks like Avantel, Ideaforge Technology, Mtar Technologies, etc., were trading lower.
The shares of companies related to the defence sector are surging higher as the geopolitical tension between India and Pakistan continues. Indian armed forces’ air strike on terror camps came ahead of a mock drill scheduled later today.
The benchmark indices opened the day on a lower note, but soon recovered sharply to trade in the green. The Nifty 50 was up 22 points or 0.09% at 24,401, while the BSE Sensex was up 77 points or 0.10% higher at 80,717.71.
A look at the top movers in the defence space
Paras Defence stock performance
Paras Defence share price has risen 5% in the previous five trading days. It has given a return of 50% in the last one month and more than 30% in the past six months. The stock price has risen 95% in the last one year. The company has recently inked a deal with Israel’s leading drone technology company, HevenDrones, to manufacture hydrogen-powered drones in India. It’s among the first such initiatives with ready-to-fly systems and immediate deployment capability.
Mazgaon Dock stock performance
The share price of Mazagon Dock Shipbuilders has risen 3.8% in the last five days. The stock has risen 28% in the previous one month and 39% in the last six months. It has given a multibagger return over the past one year, gaining 174%.
Other defence stocks to keep an eye on are BEL, BDL, and Garden Reach Shipbuilders. They all have business in the same space.