Delhi Red Fort blast impact? MTAR Tech, other defence shares rise up to 6%

Delhi Red Fort blast impact? MTAR Tech, other defence shares rise up to 6%

Defence shares were buzzing in morning trade on November 11 a day after at least nine people died after a high-intensity explosion ripped through a slow-moving car at a traffic signal near Delhi's Red Fort metro station.

MTAR Technologies, Data Patterns, Dynamatic Technologies led the gains among defence shares by rising 6%, 5% and 3=4.6%, respectively.

Garden Reach Shipbuilders & Engineers and Solar Industries also gained by climbing 2.8% and 4.5%, respectively.

Police said that the car, in which the blast took place, had three occupants, adding that they are also probing if it was a suicide bomber attack.

Part of the rally in defence stocks could stem from the fact that they rallied 40%-70% when Operation Sindoor was launched in May as part of India's response to the Pahalgam terror attack.

On November 11, Nifty India Defence index closed trading 2.4% higher at 8,271 while Sensex and Nifty trading rose 0.4% each.

The sectoral index rose for second straight session as Goldman Sachs identified the sector among  key themes to track for the next one year.

The global brokerage has set a Nifty 50 target of 29,000 by December 2026, suggesting a potential upside of about 14% from Friday’s closing levels.

Goldman Sachs has identified financials, consumer staples, defence, and oil marketing companies (OMCs) as the key themes for investors to focus on over the next year.

Last month, Goldman Sachs had turned bullish on India's aerospace, defense sector and prefers private players over their public sector (PSU) peers as the country ramps up its defence export target to Rs 50,000 crore by fiscal 2028-29 (FY29) as compared to Rs 23,600 crore last year.

Among individual stocks, Solar Industries, Bharat Electronics, Data Patterns and PTC Industries are Goldman Sachs’ top buy ideas.

Meanwhile, Solar Industries reported 21% YoY rise in consolidated net profit in September quarter. Goldman Sachs said Q2 results ahead of its estimates, adding the company's revenue, profit growth in defence, international segments are aided by capacity expansion.