Defence Stocks Rally in June: On June 17, defence stocks in India saw a strong rally as the fight between Israel and Iran entered its fifth day. This ongoing conflict made many investors turn their attention toward defence companies. The Nifty India Defence Index climbed over 1.6% during the day and crossed the 9,000 mark for the very first time. Many experts think the current rise is because people expect global defence budgets to go up as the Middle East situation grows more serious.
One of the biggest gainers was Mazagon Dock Shipbuilders, which went up by more than 5%. Garden Reach Shipbuilders & Engineers, also known as GRSE, followed with a rise of over 4%. Data Patterns also did well and increased by more than 3%. Bharat Dynamics, Cochin Shipyard, Solar Industries, BEML, and Hindustan Aeronautics Limited (HAL) all moved up between 1% and 2%, reported Zee Business. But not every stock gained. Zen Technologies, Mishra Dhatu Nigam, and Astra Microwave Products were slightly down, even though most of the defence sector was moving up.
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This rise in defence stocks didn’t start just now. Back in May, defence shares already started gaining when India carried out airstrikes in Pakistan under something called Operation Sindoor. That action pushed many investors to feel more confident about defence companies. Even though things cooled down after those strikes, the world is still dealing with war situations like the one between Russia and Ukraine, and now Israel and Iran. All of these events are keeping up the positive energy around defence investments.
Analysts also point out that India’s own defence policy is helping. The government is working on making more defence products in India and wants to sell them to other countries too. They have set a target of reaching ₹25,000 crore in defence exports by the year 2026. On top of that, India plans to spend more money on defence, with possible increases from 2% of GDP to even 4% in the future.
Experts Say to Stay Cautious
The companies in this sector have also shown good results over the past few years. From 2019 to 2025, the market value of defence stocks grew at a rate of 55% every year, while profits went up 23% each year. In the March quarter, these companies improved their profit margins thanks to better work and lower costs. Dr. VK Vijayakumar from Geojit Financial Services said, “The sector’s long-term fundamentals remain strong, especially for export-linked players like HAL and Solar Industries.”
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Still, not everything is perfect. Some experts are warning people not to get carried away. Avinash Gorakshakar from Profitmart Securities said, “Most defence PSUs are currently pricing in a lot of future optimism. Since the government is both the owner and the largest client, profit upside could be limited. Investors should accumulate these stocks gradually with a minimum two-year horizon.” He suggests that people should not rush to buy when prices are going up too fast and should be patient instead.
Sankhanath Bandyopadhyay from Infomerics also gave advice for investors. He said, “Stocks like HAL, BEL, and Solar Industries are better placed given their order books and export potential. But don’t chase rallies—evaluate balance sheets, dividend history, and global linkages before committing capital.”
Top defence stocks in focus
- Mazagon Dock Shipbuilders: +5%
- GRSE: +4%
- Data Patterns: +3%
- Bharat Dynamics, Cochin Shipyard, Solar Industries, HAL: +1–2%
