Red-hot defence stocks may have more legs to run, say analysts

The growth has come on the back of healthy growth in the order books of defence companies amid the government's focus on indigenisation and surge in exports

With one-year returns for benchmark indices remaining lacklustre, investors have been scouting for individual stocks or sectors to generate superior returns. One such theme that has played out well over the past year has been defence.

The Nifty India Defence Index has not just bucked weak market trends, but crushed every major sectoral index. Data shows that the Nifty Defence (total return index) Index has jumped 50 per cent in 2021-22 (FY22) and has already risen 44 per cent so far this financial year (2022-23, or FY23).

The growth has come on the back of healthy growth in the order