Indian defence stocks rallied sharply on Monday, with the Nifty Defence index surging 2 per cent, as heightened geopolitical tensions following reports of US raids in Venezuela triggered renewed buying interest in defence and strategic-sector names.
Market participants said the spike reflected a familiar risk-off pattern, where escalating global conflicts and uncertainty tend to boost investor appetite for defence-linked stocks, both as a thematic play and on expectations of sustained global military spending.
The index outperformed and closed at 7,945.95 after hitting an intraday high of 7,989.80.
MTAR Technologies and Data Patterns emerged as the top gainers in the index, settling with 4 per cent jump.
Heavyweight stock BEL ended with 3 per cent gains at ₹413.80 on the NSE, climbing to a high of ₹418.60, HAL settled with over 2 per cent increase at ₹4,526.10, hitting a high of ₹4,544.90. Bharat Dynamics surged 3 per cent to ₹1,541.80.
Other notable gainers included Solar Industries, Astra Micro, Paras Defence, GRSE and Mazagon Dock Shipbuilders.
According to market experts, the rally underscores the sector’s growing sensitivity to global geopolitical developments, alongside long-term structural tailwinds such as union budget, and increasing export opportunities for Indian defence manufacturers.
Despite the sharp move, market experts cautioned that near-term volatility may persist, tracking further developments on the geopolitical front. However, they remain constructive on the defence space over the medium to long term, citing strong order inflows, government support and improving margins across the sector.