The shares of defence companies surged on May 13 after Prime Minister Narendra Modi called for more self-reliance in military needs through the usage of 'Made in India' equipment. The sharp rise in the share prices pushed the Nifty India Defence index up nearly 4 percent to end the session at 7,432.
During his first address to the nation on Operation Sindoor, Prime Minister Narendra Modi on May 12 said the military mission has displayed the capabilities of Indian armed forces in the deserts and mountains and also proved "our superiority in new age warfare". He added, "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."
Bharat Dynamics (BDL) shares were the top gainer on the index, jumping nearly 11.5 percent to close at Rs 1,750 apiece. This marks the biggest single day gain for the defence stock in one year.
Notably, during a joint briefing by the DGMOs on May 12, Air Marshal AK Bharti said, "Our battle-proven systems stood the test of time and take them head on. Another highlight has been the stellar performance of the indigenous air defence system, the Akash system. Putting together and operationalising the potent AD environment has been possible only because of budgetary and policy support from the government of India in the last decade."
Bharat Dynamics is one private sector entity that has received the order to manufacture the Akash missile system. Hence, the latest comments on the Akash system may have acted as a further boost for the stock.
GRSE and Zen Tech shares gained over 5 percent each, while Bharat Electronics (BEL), Cochin Shipyard and Hindustan Aeronautics (HAL) shares surged over 3.8 percent each.
BEML and Mazagon Dock Shipbuilders shares jumped over 3.6 percent, while Paras Defence shares rose over 2.7 percent.
Air Marshal AK Bharti has said, "All military bases & systems fully operational. We are ready to undertake future missions."
India's defence exports has risen to a record high of Rs 23,622 crore in FY25, which is a growth of 12 percent on year. Defence Minister Rajnath Singh has already underscored the target of increasing defence exports to Rs 50,000 crore by 2029.
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