Defence Stocks in Action: Defence stocks like Cochin Shipyard, BEL, Paras Defence and others continue to rally, and they have surged over 71 per cent in the past couple of weeks.
Defence Stocks in Action: Shares of defence companies continue to rally even as the stock market had a flat start on Monday, i.e. on May 19, 2025. The action in the defence segment is being seen as the Defence Acquisition Council (DAC) has granted approximately Rs 40,000 crore under emergency powers for the procurement of arms and ammunition for the defence forces. The Nifty India Defence opened with a gain of 153.40 points at 8,462.55 against the previous close of 8,309.15. Defence stocks like Cochin Shipyard, BEL, Paras Defence and others continue to rally, and they have surged over 71 per cent in the past couple of weeks.
Defence is one of the key sectors that has significantly outperformed the broader market, driven by renewed investor confidence in an improving business outlook. However, experts feel that this has led to excessive valuation of several defence companies, and investors need to be extremely cautious.
“An important trend in the market is the sharp rally in defence stocks. Even though this segment has bright medium to long-term prospects, its valuations have become excessive and, therefore, investors have to be extremely cautious. Some profit booking in this segment would be appropriate,” said Vinod Nair, Head of Research, Geojit Investments Limited.
All major defence stocks – Cochin Shipyard, GRSE, Mazagon Dock, BEM, HAL, Zen Technology, Paras Defence and others – opened in green today. However, some of the fell soon after amid profit booking.
Shares of Mazagon Dock opened with a gain of 1.06 per cent at Rs 3,559.80 on the NSE against the previous close of Rs 3,522.40 and surged to touch the high of Rs 3,733 – a gain of almost 6 per cent. However, the stock dipped amid profit and touched the intraday low of Rs 3,378 – a fall of over 4 per cent.
Shares of Bharat Electronics or BEL gained today. The surge can also be attributed to the recent order. The company has informed exchanges that it has received a Rs 572 crore order.
Stocks of Paras Defence, BEML and Zen Technology were still in the green at the time of writing the report.
