BDL, Mazagon Dock, other defence shares jump up to 5% amid India-Pak tensions

BDL, Mazagon Dock, other defence shares jump up to 5% amid India-Pak tensions.

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Shares of defence companies rallied on Monday, with Bharat Dynamics Ltd (BDL) surging nearly 5 percent, as escalating tensions between India and Pakistan prompted a fresh round of buying in the sector. According to reports, Prime Minister Narendra Modi today met Defence Secretary Rajesh Kumar Singh.

The Nifty Defence index rose 1.8 percent intraday, reversing two days of losses, as investors bet on a likely boost to defence manufacturing and revenues amid rising cross-border hostilities.

BDL led the gains, climbing 4.62 percent to hit an intraday high of Rs 1,555.5 on the NSE. The stock had fallen in the previous two sessions but bounced back strongly on Monday.

Mazagon Dock Shipbuilders rose 2.75 percent while Hindustan Aeronautics Ltd (HAL) added 1.98 percent. Shares of Paras Defence and Space Technologies also edged up nearly 2 percent in intraday trade.

The gains in defence stocks came after multiple reports said Pakistan’s military conducted a second missile test in as many days. Separately, Pakistani troops reportedly opened unprovoked fire across eight forward sectors along the Line of Control (LoC) in Jammu and Kashmir, in violation of the ceasefire agreement.

This marked the 11th consecutive night of cross-border firing, according to defence officials. The flare-up comes in the wake of the April 22 terror attack in Pahalgam that left 26 people dead, heightening tensions between New Delhi and Islamabad.

Among the 18-stock Nifty Defence index, Zen Technologies and Data Patterns (India) were the only notable laggards in Monday's session.

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