Defence Stocks Surge After PM Modi’s Call for ‘Made in India’ Push

Market Performance

Defence-related shares rallied strongly on May 13, driven by Prime Minister Narendra Modi's emphasis on self-reliance in military manufacturing.

The Nifty India Defence Index soared nearly 4%, hitting approximately 7,416, highlighting strong investor confidence in India's growing defence capabilities.

Key gainers included:

• BDL (Bharat Dynamics Ltd): Surged over 7% to ₹1,683.90
• BEL (Bharat Electronics Ltd): Jumped over 4.3%
• HAL (Hindustan Aeronautics Ltd): Rose more than 4.3%
• Zen Technologies: Gained over 4%
• Cochin Shipyard: Up more than 4%
• Mazagon Dock Shipbuilders: Climbed 3.6%
• Paras Defence Shares: Increased 2.7%
• GRSE (Garden Reach Shipbuilders & Engineers): Gained over 3%

Main News

During his national address on Operation Sindoor on May 12, PM Modi praised the performance of India's indigenous military systems. He asserted that "Made in India" defence equipment proved its effectiveness in modern warfare scenarios — both in desert and mountainous terrains.

"Today, the world is witnessing that in 21st-century warfare, the time has come for Made in India defence equipment," said PM Modi.

His statements significantly boosted defence stocks, especially those involved in developing or producing advanced indigenous systems.

Company Details

Bharat Dynamics Ltd (BDL)

• Emerged as the top gainer among defence stocks.
• Shares rose over 7%, partly due to its role in manufacturing the Akash missile system.
• The Akash air defence system received special mention during a joint military briefing, reflecting its strong battlefield performance.

Bharat Electronics Ltd (BEL)

• Gained more than 4.3% as it plays a pivotal role in electronics-based defence infrastructure.

Hindustan Aeronautics Ltd (HAL)

• Rose over 4.3%, with strong tailwinds from its deep involvement in India's aerospace and military aviation sectors.

Zen Technologies

• Up by more than 4%, the company is known for its simulation and training solutions for the armed forces.

Cochin Shipyard

• It also increased by over 4%, benefiting from government initiatives in naval defence infrastructure.

Mazagon Dock Shipbuilders

• Shares rose by 3.6%, reinforcing the company's strategic role in constructing warships and submarines for the Indian Navy.

Paras Defence Shares

• Gained 2.7%, with growing investor interest due to its specialisation in space and defence technologies.

India's Rising Defence Export Numbers

India's defence export sector is also witnessing a robust uptrend:

• FY25 Defence Exports: ₹23,622 crore
• YoY Growth: 12% increase
• Target for 2029: ₹50,000 crore, as set by Defence Minister Rajnath Singh

These figures underline the increasing global demand for Indian-made defence technology, adding long-term value to stocks like BDL, BEL, HAL, Zen Technologies, Cochin Shipyard, Mazagon Dock Shipbuilders, and Paras Defence Shares.

Summary

The Indian defence sector witnessed a sharp surge in stock prices following PM Modi's vocal support for Made in India military systems. Companies like BDL, BEL, and HAL saw gains ranging from 2.7% to 7%, pushing the broader defence index upward. With India's defence exports on the rise and strategic policies in place, defence companies are well-positioned for sustained growth.

Investors and stakeholders closely watch developments in indigenous defence capabilities as India strengthens its global footprint in this strategic sector.