Drone Stocks Rally Up to 50% After Operation Sindoor; Defence Sector Buzzes with Order Expectations

Drone and defence-related stocks are soaring, riding high on optimism following Operation Sindoor. After the Indian armed forces launched this decisive operation in response to the Pahalgam terrorist attack, the stock market quickly reflected the sentiment, especially in the defence and aerospace segment.

Since May 7, shares of major players like IdeaForge Technology, Paras Defence, Zen Technologies, Hindustan Aeronautics, Bharat Electronics, and DCM Shriram Industries have seen a sharp rally, gaining between 8% and 50%. These companies, known for their involvement in drone technology and defence equipment manufacturing, are now under the spotlight as investors anticipate a potential wave of new orders.

The market buzz indicates growing investor confidence in the future of new-age warfare, where drones and advanced defence systems will play a central role. Drone stocks in particular have been the biggest beneficiaries, reflecting the strategic shift in modern military operations.

“The rally in defence stocks is primarily driven by strong orderbook anticipation and fresh order announcements,” said Vinit Sambre, Head of Equities at DSP Mutual Fund, in a recent interaction on CNBC-TV18. However, he also added a note of caution. According to him, corporate commentary has remained muted, largely due to uncertainties in the macroeconomic environment.

Sambre further highlighted that defence projects often involve long execution cycles, meaning it could take time for companies to realise revenue from these anticipated orders. This serves as a reminder that while the stock movement is promising, actual business outcomes will unfold gradually.

Still, the excitement is palpable. With India’s defence focus shifting towards indigenous manufacturing, drone warfare, and strategic readiness, companies involved in these areas are well-positioned for long-term growth. Operation Sindoor has only accelerated this sentiment, acting as a catalyst for market enthusiasm.

In summary, Operation Sindoor has triggered a major rally in drone and defence stocks, reinforcing the market’s belief in the sector’s future potential. While IdeaForge, Paras Defence, Zen Technologies, HAL, BEL, and DCM Shriram Industries shine bright on the charts, industry experts urge a balanced outlook, keeping in mind the long-term nature of defence contracts and the broader economic climate.

Key defence stocks rallying:

• IdeaForge Technology

• Paras Defence

• Zen Technologies

• Hindustan Aeronautics (HAL)

• Bharat Electronics (BEL)

• DCM Shriram Industries