Defence stocks surge up to 5%, index snaps two-day losing streak; BEL, Solar Industries among top gainers

Defence stocks surge up to 6%, index snaps two day losing streak: Here are the top gainers

Defence stocks recorded significant gains on May 21, pushing the Nifty India Defence index higher by nearly 3 percent in afternoon trade. The index has now snapped a two-day losing streak which began after a record rally.

The rise in the defence shares also comes amid an overall uptrend in the market, with benchmark indices Sensex and Nifty snapping a three-day losing streak to end the session in the green with marginal gains. Defence stocks have seen significant volatility recently, dropping for the past two sessions after record bull run. During the rally, the combined market capitalisation of 18 listed defence companies hit Rs 11.23 lakh crore, marking a sharp 50 percent increase from the February low of Rs 6.95 lakh crore.

The record rally had come on the back of heightened geopolitical tensions between India and Pakistan after 'Operation Sindoor'. The stocks had dropped significantly over the past two sessions, as investors resorted to profit booking at elevated levels. The stocks have again rebounded today.

Bharat Electronics shares were the top gainer on the index, surging over 5 percent to close at Rs 382.95 apiece. This comes after brokerages issued bullish calls for the stock after its Q4 earnings. Bharat Electronics reported an 18.4 percent increase in consolidated net profit to Rs 2,127 crore in the March quarter, on account of higher revenues, as against Rs 1,797 crore in the January-March period of FY2024, the company said in an exchange filing. The company's total revenue from operations increased 6.8 percent to Rs 9,149.6 crore from Rs 8,564 crore in the year-ago quarter.

"Various projects of the Army, Navy, and Air Force are being discussed. We are actively involving ourselves in those discussions, and we are hoping good orders will come under emergency procurement also for us," the management said during an investor call with analysts.

Solar Industries India shares also gained over 5 percent to close at Rs 14,198 apiece. Garden Reach Shipbuilders & Engineers (GRSE) and Bharat Dynamics (BDL) shares rose around 4.7 percent, while Data Patterns jumped 4.34 percent.

Hindustan Aeronautics (HAL) shares rose over 3 percent to close at Rs 5,003 apiece, while Mazagon Dock Shipbuilders shares closed nearly 3 percent higher at Rs 3,424 apiece. BEML shares were up 2 percent. Cochin Shipyard and DCX India shares were up over 1 percent.

Notably, India's defence exports to around 100 countries have soared 34 times in the past 11 years, from Rs 686 crore in FY14 to Rs 23,622 crore in FY25. Experts say a slew of policy measures including simplification of industrial licensing procedure, removal of parts and components from license regime, along with easing rules for exports of equipment have contributed to India transforming from a net importer of defence equipment to an exporter.