Defence sector stocks rallied on August 18, 2025, with Data Patterns, Bharat Dynamics, Zen Technologies, Garden Reach Shipbuilders, DCX Systems, ideaForge Technology, and Mazagon Dock Shipbuilders gaining up to 4%. The surge came after Prime Minister Narendra Modi announced fresh initiatives to boost domestic defence manufacturing under Mission Sudarshan Chakra.
Key Reasons for the Rally
1. Mission Sudarshan Chakra & Indigenous Air-Defence Push
In his Independence Day address, PM Modi launched Mission Sudarshan Chakra, aimed at developing a dome-like indigenous missile defence shield, similar to Israel’s Iron Dome, to protect critical civilian and military assets.
The government also renewed its push for indigenous jet engine development, reviving efforts that began with the Kaveri engine programme. This strengthens India’s Atmanirbhar Bharat initiative in defence technology.
2. Operation Sindoor Success
India’s recent Operation Sindoor showcased its homegrown defence capabilities by intercepting drones and missiles launched by Pakistan. Reports also confirmed that the BrahMos missile played a key role in striking Pakistani military installations, boosting investor sentiment in missile and aerospace-linked stocks.
3. Record Defence Production & Exports
FY25 Defence Production: ₹1.5 lakh crore (up 18% YoY, 90% higher since FY20)
Defence Exports: Hit an all-time high of ₹23,622 crore in FY25
Target by 2029: ₹50,000 crore in annual exports
This robust growth outlook has strengthened investor confidence in defence manufacturers.
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