The total market value of 18 publicly traded defence firms has climbed to ₹11.23 lakh crore, signalling robust investor confidence and heightened interest in the defence sector. This marks a substantial increase from the previous peak of ₹10.09 lakh crore recorded in July 2024 and a remarkable 50% rise from the February low of ₹6.95 lakh crore.
Mazagon Dock Shipbuilders Limited saw a decline of 3.42% to ₹3,402.10 at 10:05 AM on the NSE as of May 19, 10:05, after gaining nearly 15% over the previous four days.
In contrast, Cochin Shipyard Limited’s share price continued its strong upward trend, rising 1.63% to ₹2,002.50 and marking its seventh consecutive session of gains, accumulating approximately 47% in total.
Meanwhile, Paras Defence and Space Technologies Limited’s shares also maintained positive momentum, climbing 3.76% to ₹1,867.10, up for the fifth straight session with gains close to 30%. These mixed movements highlight active trading in defence stocks amid varied investor sentiments.
The Nifty India Defence Index has demonstrated significant upward momentum, gaining 9% in May alone, following solid advances of 11.5% in April and 24.6% in March. This rally follows a sharp correction of 33% between July 2024 and February 2025.
Since hitting its low in February, the index has recovered impressively by over 50%. Despite this broad recovery, only six stocks within the index have surpassed their previous all-time highs, with the rest still trading below past peaks.
The upward trend was initially sparked by rising geopolitical tensions between India and Pakistan. The market then experienced a strong rebound from March to April, recovering from the earlier downturn. These geopolitical challenges have increased focus on India’s defence sector, driving investment and growth.
Investor confidence was further reinforced when Prime Minister Narendra Modi reiterated the government’s commitment to boosting indigenous defence manufacturing through the Make in India initiative. His focus on enhancing modern warfare capabilities and the strategic importance of homegrown defence systems has created strong expectations of ongoing policy support.
Sentiment has also been buoyed by reports that over a dozen countries are keen to acquire the BrahMos missile system. The weapon’s strategic capabilities were prominently displayed during Operation Sindoor, highlighting India’s expanding prowess in defence technology and boosting the sector’s global reputation.
Read More: Adani Defence Inks Deal with US Based Sparton for Anti-Submarine Warfare Systems.
The recent movements in defence stocks reflect a combination of geopolitical developments and government initiatives supporting indigenous manufacturing. While the Nifty India Defence Index has recovered from earlier declines, the varied performance among individual stocks indicates a mixed investor response. Ongoing interest in India’s defence technology and strategic policy emphasis continue to shape market dynamics in this sector.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing.
Published on: May 19, 2025, 10:27 AM IST
Neha Dubey
Neha Dubey is a Content Analyst with 3 years of experience in financial journalism, having written for a leading newswire agency and multiple newspapers. At Angel One, she creates daily content on finance and the economy. Neha holds a degree in Economics and a Master’s in Journalism.
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