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Indian Defence Stocks Extend Four-Day Rally to Two-Month High

Policy clarity from TPCR-2025 is fuelling a sector re-rating.

Overview

  • The Nifty India Defence index rose 2.61% intraday to 8,366.95, the highest since July 18 and the top gainer among NSE sectoral indices.
  • Defence stocks’ combined market capitalisation increased by about Rs 9,375 crore to roughly Rs 10.22 lakh crore during the session.
  • Cochin Shipyard and GRSE led gains with intraday moves near 6–8%, while Ideaforge jumped almost 7% and Zen Technologies locked at a 5% upper circuit.
  • Buying interest follows media reports that the Defence Ministry is reviewing an Indian Air Force proposal for 114 “Made-in-India” Rafale jets, a development not officially confirmed.
  • Brokerages cite structural support from TPCR-2025’s 457-program pipeline that shifts spending toward electronics and subsystems, while warning on valuations and noting HAL’s roughly Rs 2.4 trillion order book alongside ADD ratings on HAL and BEL.