Mazagon Dock, Paras Defence Lead Sector Rally After Rajnath Singh's Exports Pledge

Shares of Indian defence companies surged on Friday after Defence Minister Rajnath Singh pledged to increase sectoral exports to Rs 50,000 crore by 2028-29 and continue the modernisation push in armed forces—ambitious goals expected to generate big business opportunities for domestic manufacturers.

BEML Ltd., Mazagon Dock Shipbuilders Ltd., Paras Defence and Space Technologies Ltd. and PTC Industries Ltd. closed more than 10% higher—the last two hit their life highs.

Other defence stocks such as Cochin Shipyard Ltd., Bharat Dynamics Ltd., IdeaForge Technology Ltd., Zen Technologies Ltd., and Garden Reach Shipbuilders and Engineers Ltd. gained between 5% and 10%.

Defence Minister Rajnath Singh stated on Thursday that the new government led by Narendra Modi will prioritise enhancing national security through the modernisation of the military and the promotion of local defence production.

Highlighting his vision for the next five years, Singh said the government will work assiduously to increase defence exports to Rs 50,000 crore by 2028-29 from the current Rs 21,083 crore.

The armed forces are being equipped with state-of-the-art weapons and platforms and they are ready to face every challenge, he said. Singh took over the Ministry for the second consecutive time.

Analysts advised investors to hold on to defence stocks amid a bullish outlook for the sector but urged investors not to make fresh investments.

“Investors should hold on to the defence stocks and keep booking profit,” Vijay Chopra, managing director and chief executive officer at Enoch Ventures, told NDTV Profit.

Investors must wait for a correction before making fresh buys, he said. The government’s intentions regarding the sector have been clear and that, according to Chopra, has led to a spurt in their stock prices.

The NSE Nifty 50 rose 0.29% to 23,465.60, and the S&P BSE Sensex ended 0.24% higher at 76,992.77.