Defence stocks in focus: HAL, GRSE gain as India conducts Operation Sindoor

Operation Sindoor, Defence stocks: Shares of Hindustan Aeronautics, Bharat Electronics, Bharat Dynamics, Data Patterns, Paras Defence gained up to 3 per cent today

Operation Sindoor impact on stock market: Defence stocks were on investors' radar today, May 7, 2025, after India launched an overnight strike against various terrorist infrastructures in Pakistan and Pakistan Occupied Kashmir (POK) under 'Operation Sindoor'.

 

Shares of Hindustan Aeronautics, Bharat Electronics, Bharat Dynamics, Data Patterns, Paras Defence and Space Technologies, Astra Microwave Products from the aerospace and defence sector, and Mazagon Dock Shipbuilders, Garden Reach Shipbuilders, and Cochin Shipyard from the shipbuilding sector notched early gains today.

 

Among individual stocks, Mazagon Dock and Garden Reach Shipbuilders share prices rallied 3.1 per cent each intraday, Cochin Shipyard share price advanced 2 per cent, HAL share price 1.8 per cent, BEL share price 1.5 per cent, and BDL share price 1.3 per cent in the intraday trade.

 

Among smallcap stocks, Astra Microwave Products share price rose 2.6 per cent, and Paras Defence added 3 per cent on the BSE today. 

  By comparison, the benchmark BSE Sensex was off morning lows and was trading 84 points (0.1 per cent) lower at 9:50 AM.  According to analysts, Operation Sindoor will likely put the focus on the pace of order execution by defence companies. The companies, they believe, are likely to be given aggressive execution targets which may become visible in a few quarters with 1-3 years' timeline, thus boosting revenues and earnings forecast over the long-term.  "Companies operating in other dimensions, i.e. non-arms and ammunition of defence, such as, cyber security, strategic minerals & rare earths, oil & gas, hydro-projects, military EPC, military logistics and railways are also likely to see execution at a higher pace. However, one should be careful to invest only at attractive valuations," said Vikas Gupta, CEO and chief investment strategist at OmniScience Capital.  He added: Defence stocks, and markets in general, are likely to be volatile over the next few days until the India-Pakistan war news stabilises. One should invest in stocks that can potentially reward in the long-term. 

India's Operation Sindoor against Pakistan

In the early hours on May 7, 2025, India hit nine terror infrastructures, located in Pakistan and POK, under Operation Sindoor. The precision strikes were in response to the Pahalgam terror attack of April 22, 2025, which killed 26 people, mostly tourists.

 

Indian Armed Forces carried out a coordinated missile attack on alleged bases of Jaish-e-Mohammed (JeM), Lashkar-e-Taiba (LeT), and Hizbul Mujahideen (HM).

 

India has confirmed that it has struck Markaz Subhan Allah, Bahawalpur; Markaz Taiba, Muridke; Sarjal, Tehra Kalan; > Mehmoona Joya, Sialkot; Markaz Ahle Hadith, Barnala; Markaz Abbas, Kotli; Maskar Raheel Shahid, Kotli; Shawai Nalla Camp, Muzaffarabad; and Syedna Bilal Camp, Muzaffarabad.

 

In retaliation, however, Pakistan has reportedly opened firing across several sectors across the Line of Control (LoC).