Nifty Defence Index Rallies on PM Modi’s Call for Indigenous Military Equipment
Defence stocks witnessed a sharp rally on May 13 as investors responded positively to Prime Minister Narendra Modi’s emphasis on the use of ‘Made in India’ defence equipment during Operation Sindoor. The Nifty India Defence Index surged nearly 4 percent, hovering around the 7,416 mark, driven by strong gains in key defence-related counters. The Prime Minister’s remarks underscored a clear push for self-reliance in military procurement, further strengthening market confidence in Indian defence manufacturing firms.
In his address to the nation on May 12, Modi said, “During this operation the authenticity of our Made in India weapons were also proven. Today, the world is witnessing that in 21st century warfare, the time has come for Made in India defence equipment.” These remarks, seen as a policy affirmation, sent investor sentiment soaring across the defence sector.
Highlights:
PM Modi emphasizes superiority of ‘Made in India’ weapons during Operation Sindoor
Nifty India Defence Index climbs nearly 4% on May 13
Investor confidence boosted by continued policy support for indigenous defence manufacturing
BDL Leads Gains as Akash System Gets High-Level Endorsement
Bharat Dynamics Limited (BDL) led the sectoral rally, jumping over 7 percent to trade at Rs 1,683.90. BDL, which manufactures the Akash missile system, gained further traction after Air Marshal AK Bharti praised the Akash system as a stellar performer during Operation Sindoor. He noted that the robust operationalisation of India’s air defence environment was enabled by budgetary and policy backing over the past decade, implicitly reinforcing confidence in firms like BDL that have executed key defence contracts.
This endorsement provided a material tailwind for BDL, reinforcing its position as a beneficiary of future indigenous missile procurement programs and defence modernisation projects.
Highlights:
BDL gains over 7% following praise for Akash missile system
Air Marshal AK Bharti highlights effectiveness of indigenous air defence systems
BDL seen as key beneficiary of missile system orders under ‘Atmanirbhar Bharat’ initiative
BEL, HAL, BEML, and Other PSU Defence Stocks Register Broad Gains
Major public sector defence players also witnessed robust gains. Bharat Electronics Ltd (BEL), Hindustan Aeronautics Ltd (HAL), and BEML each rose over 4.3 percent, backed by renewed investor confidence in their long-term project pipelines and their alignment with the government’s defence self-reliance strategy.
Additionally, Zen Technologies and Cochin Shipyard rallied over 4 percent each, while Mazagon Dock Shipbuilders advanced 3.6 percent. Other gainers included Garden Reach Shipbuilders & Engineers (GRSE), up over 3 percent, and Paras Defence and Space Technologies, which climbed 2.7 percent.
With Air Marshal AK Bharti confirming that “all military bases and systems are fully operational” and India’s preparedness for future missions, defence stocks are increasingly being seen as strategic investment bets by both institutional and retail investors.
Highlights:
BEL, HAL, BEML rise over 4.3% amid growing optimism on indigenous defence capabilities
Zen Tech, Cochin Shipyard also gain over 4%, driven by tactical defence optimism
GRSE and Paras Defence post modest gains amid broader rally
India’s Defence Exports Hit Record; Government Targets Rs 50,000 Crore by 2029
Adding further momentum to investor sentiment, India’s defence exports hit a new record of Rs 23,622 crore in FY25, marking a 12 percent year-on-year growth. Defence Minister Rajnath Singh has reaffirmed the government’s commitment to expanding India’s footprint in global defence markets, setting an ambitious export target of Rs 50,000 crore by 2029.
This sustained export growth reinforces the underlying strength and global relevance of India’s defence manufacturing capabilities. The dual thrust on domestic self-reliance and global market expansion continues to act as a powerful catalyst for stock performance across the defence sector.
Highlights:
India’s FY25 defence exports reach record Rs 23,622 crore, up 12% YoY
Government aims to scale defence exports to Rs 50,000 crore by 2029
Export performance bolsters confidence in long-term sectoral growth trajectory
