Defence stocks continue rally; Sika Interplant, Astra Microwave up over 9%

Defence sector stocks shine as investor interest rises after showing of India-made armaments and systems during the recent Operation Sindoor

Shares of defence-centric companies, particularly those involved in drone technology, missile systems, and related equipment, remained in strong demand on Thursday, closing the day with sizeable gains.

 

Sika Interplant Systems led the group with a sharp rise of 9.26 per cent, followed closely by Astra Microwave Products, which soared 9.23 per cent. Axiscades Technologies gained 5 per cent, while Taneja Aerospace & Aviation, known for its work in aviation and aerospace, climbed 4.99 per cent. Data Patterns advanced by 3.30 per cent, Paras Defence rose 3.12 per cent, and Bharat Dynamics moved up 2.35 per cent. Shares of Hindustan Aeronautics were up 2 per cent, Bharat Electronics gained 1.74 per cent, and Mishra Dhatu Nigam edged up 1.55 per cent on the Bombay Stock Exchange (BSE), news agency PTI reported.

 

 

Droneacharya Aerial Innovations, a renowned drone maker, also saw its shares rise by 2 per cent.

 

In the broader market, too, investor sentiment remained upbeat. The 30-share BSE Sensex surged 1,200.18 points, or 1.48 per cent, closing at a seven-month high of 82,530.74. The NSE Nifty followed suit, jumping 395.20 points, or 1.60 per cent, to end at 25,062.10, which is also a seven-month high.

 

Defence sector stocks have been on a winning streak this week, registering gains since last Friday.

 

The revived interest in defence shares follows the launch of Operation Sindoor by the Indian defence forces on May 7. The military operation intially targeted terror infrastructure inside Pakistan and Pakistan-occupied Kashmir (PoK), but following escalation by Pakistan, Indian armed forces targeted hits on key Pakistan air bases. An understanding to stop firing was reached on May 11. However, Indian air defence systems acquitted themselves commendably, successfully neutralising most of Pakistan's drone-swarm and missile attacks.

 

"Defense stocks remain in focus, buoyed by strong domestic demand and rising export optimism, having gained nearly 11 per cent this week," said Siddhartha Khemka, Head - Research, Wealth Management, Motilal Oswal Financial Services Ltd.