Defense Stocks Lead Market Rally as BEL Surges 4.5%

Sensex and Nifty Trade Higher, Defense Sector Outperforms

Benchmark indices saw marginal gains on Tuesday afternoon, buoyed by strong performance from defense stocks following the announcement of India’s Rafale deal with France. By 12:45 PM, the Sensex stood at 80,326.42, up 108.05 points or 0.13% from its previous close, while the Nifty50 rose 12.80 points or 0.05% to 24,341.30.

Highlights:

• The Sensex rose by 0.13% and Nifty50 by 0.05% on Tuesday afternoon.

• The market’s positive movement was driven by defense stocks, particularly Bharat Electronics Limited (BEL).

• BEL surged 4.5% following news of the ₹63,000 crore Rafale deal with France.

BEL Emerges as Top Gainer on Strong Trading Volumes

Bharat Electronics Limited (BEL) emerged as the top gainer on the NSE, surging 4.51% to ₹318.80 on robust trading volumes. A total of 3.96 crore shares were traded, valued at ₹1,25,036.86 lakhs. The surge in BEL’s stock price was linked to the ₹63,000 crore Rafale deal between India and France, which boosted investor sentiment in the defense sector.

Highlights:

• BEL surged 4.5%, becoming the top gainer on the NSE.

• Strong trading volumes were recorded, with 3.96 crore shares traded.

• The surge was driven by the Rafale deal announcement.

Other Market Movers: Reliance, Tech Mahindra Lead the Gains

Among other major gainers, Reliance Industries rose 2.68% to ₹1,405.50, continuing its positive momentum. Similarly, Tech Mahindra climbed 1.99% to ₹1,490.60, contributing to the overall market rally. Both TCS and Bajaj Finserv also posted gains of 0.95% and 0.89%, respectively, further supporting the market’s upward trajectory.

Highlights:

• Reliance Industries gained 2.68%, reaching ₹1,405.50.

• Tech Mahindra also saw a 1.99% rise, closing at ₹1,490.60.

• TCS and Bajaj Finserv added to the gains, rising by 0.95% and 0.89%.

Market Laggards: UltraCemCo, Dr. Reddy’s Lead Decliners

On the downside, UltraCemCo led the laggards, dropping 2.51% to ₹11,810 despite meeting its quarterly earnings expectations. Dr. Reddy’s Laboratories also faced a decline of 2.34%, closing at ₹1,170.70. Other notable decliners included Power Grid Corporation, which fell 2.09% to ₹302.10, as well as Coal India and Shriram Finance, both shedding around 1.5%.

Highlights:

• UltraCemCo dropped 2.51%, leading the decliners.

• Dr. Reddy’s Laboratories and Power Grid Corporation also saw losses.

• Coal India and Shriram Finance lost over 1.5%.

Broader Market Shows Resilience, RBI Support for Banking Sector

The broader market showed resilience, with the Nifty Midcap 100 gaining 0.34% to 54,625.65, reflecting strength in mid-cap stocks. However, the Nifty Bank index traded marginally lower at 55,421.55, down 0.02%, while the Nifty Financial Services index fell 0.41% to 26,184.25.

The Reserve Bank of India’s announcement of ₹1.25 lakh crore open market operations continues to provide support to the banking and NBFC sectors, although these indices showed a slight dip.

Highlights:

• The Nifty Midcap 100 gained 0.34%, reflecting strength in mid-cap stocks.

• The Nifty Bank and Nifty Financial Services indices saw slight declines.

• RBI’s open market operations continue to provide support to banking and NBFC sectors.

Foreign Institutional Investors Maintain Strong Buying Streak

Foreign institutional investors (FIIs) continued their strong buying streak, investing nearly ₹35,000 crore in Indian equities during April alone. This sustained inflow of foreign capital has been a key factor in supporting market sentiment, even amid global uncertainties.

Highlights:

• FIIs have invested ₹35,000 crore into Indian equities in April.

• Foreign capital inflows have helped support market sentiment.