Defence Stocks Surge Amid Rising India-Pakistan Border Tensions

Market Performance

Defense stocks saw a sharp increase on Monday, fueled by escalating tensions between India and Pakistan after a terror attack in Pahalgam, Jammu, and Kashmir. This geopolitical uncertainty prompted strong buying interest in the sector.

The Nifty Defence index jumped by 4.5%, marking its highest intraday gain since April 15, 2025. Notably, 17 out of 18 companies in the index were trading in the green, with Paras Defence, Garden Reach Shipbuilders & Engineers, and Data Patterns (India) leading the rally.

Main News

Shares of Paras Defence and Space Technologies rose sharply by 11.66%, reaching an intraday high of Rs 1,167 on the NSE. This rise follows the company's announcement that its board will meet on April 30 to discuss a potential stock split, approve audited financial results for FY25, and recommend a dividend.

Other major gainers included Garden Reach Shipbuilders & Engineers, which rose by 9.17%, and Data Patterns, which gained 8.17%.

Company Details

• Bharat Electronics Ltd (BEL), another significant player in the sector, gained 3.28%, reaching an intraday high of Rs 307.35. This made it the second biggest gainer on the Nifty50 index after Reliance Industries.

The rally comes amid discussions surrounding India's security situation in Jammu and Kashmir, with Defence Minister Rajnath Singh providing an update to Prime Minister Narendra Modi. Following the attack that killed 26 tourists on April 22, India has vowed strong retaliatory measures, with Prime Minister Modi emphasizing a "harsh response" to those responsible.

International Defence Deals

In line with the growing military tensions, India is expected to sign a Rs 63,000-crore deal with France to purchase 26 Rafale Marine fighter jets. This move aims to bolster naval aviation capabilities for deployment on the aircraft carrier INS Vikrant.

Summary

The surge in defense stocks reflects investor confidence fueled by the escalating India-Pakistan border tensions and intense governmental action. With major players like Paras Defence, Garden Reach Shipbuilders, and Bharat Electronics leading the charge, the sector shows strong growth potential amid rising security concerns and international defense contracts.