Overview

• India's defence sector market capitalization has reached a record ₹11.23 lakh crore, fueled by strong investor interest and geopolitical tensions following Operation Sindoor.
• The Nifty India Defence Index has rebounded sharply, climbing over 50% since its February 2025 low, reflecting a surge in sectoral momentum.
• Promoters of Paras Defence sold 5.8% of their holdings as the stock doubled in value since March, signaling selective profit-taking amidst the rally.
• Government initiatives like Make in India and emergency procurement powers worth ₹40,000 crore have strengthened the sector's domestic manufacturing base and export potential.
• Analysts warn that stretched valuations in defence stocks may prompt profit-booking, despite long-term optimism for the sector's growth prospects.