Defence stocks rally as Operation Sindoor boosts shares of Data Patterns, MTAR Technologies, Mazagon Dock, others

Amid a crackdown on Pakistani terror groups under Operation Sindoor, India's defence stocks surged on Thursday, riding on a wave of patriotic sentiment. The rally followed India's most significant incursion into the Pakistan territory since 1971, escalating tensions between the two nations.

Shares of defence companies such as Data Patterns (India) Ltd., MTAR Technologies Ltd., Cyient DLM Ltd., Unimech Aerospace and Manufacturing Ltd., Mazagon Dock Shipbuilders Ltd. , and Garden Reach Shipbuilders & Engineers Ltd. surged over 4% on the NSE on Thursday.

As of 12:48 PM, the NIFTY India Defence Index is up 1.32% at 7,031.90, rebounding from a similar decline in the previous session. The index touched an intraday high of 7,059.65, with 17 of its 18 constituents trading in the green. The index has gained 16% over the past month and 35.19% in the last year.

Defence stocks rallied sharply in intraday trade. Data Patterns jumped 6.43% to ₹2,297, while MTAR Technologies rose 5.28% to ₹1,455.10. Mazagon Dock gained 3.69% to ₹2,920, and Cyient DLM advanced 3.87% to ₹444.75. Unimech Aerospace climbed 3.69% to ₹928, and Garden Reach Shipbuilders added 3.64% to hit ₹1,858.

Outside the NIFTY India Defence Index, shares of Bharat Dynamics and Cochin Shipyard also gained up to 3% in Thursday’s trade.

On May 7, India launched missile strikes under Operation Sindoor, targeting nine militant sites in Pakistan and Pakistan-occupied Kashmir (PoK). The strikes were in retaliation to the Pahalgam attack, which killed 26 Indian tourists and was attributed to Pakistan-based terror groups.

Defence stocks have thus, seen a sharp rally in recent sessions, particularly after the Pahalgam terror attack. Since the April 22 attack, the NIFTY Defence Index has risen 2.14% and is up 6% year-to-date. However, with valuations running high and geopolitical tensions simmering, some investors are booking profits or adopting a cautious stance.