Defense stocks witnessed a significant surge on September 17. Shares of Cochin Shipyard and GRSE jumped up to 8%, while stocks like BEL, HAL, and Mazagon Dock also recorded gains. The rally is attributed to a potential deal for 114 Made-in-India Rafale aircraft and new orders received by BEL.
Defence Stocks: On September 17, shares of Indian defense companies saw a rise for the fourth consecutive day. Shares of Cochin Shipyard and GRSE climbed up to 8% during trading hours, while BEL, HAL, and other defense stocks also traded in the green. The primary reasons behind this surge were a potential Rafale deal worth over Rs 2 lakh crore and new orders worth Rs 712 crore received by BEL. Analysts believe that long-term opportunities exist in the defense sector, but investors should remain cautious at current valuations.
Nifty Defence Index Surges Sharply
The Nifty Defence Index rose by 2.6% today. During this period, Cochin Shipyard's stock increased by 5.6% to reach Rs 1,923.85. Notably, this stock closed in the green for the sixth consecutive day, registering a gain of approximately 18% during this period. On the other hand, GRSE's stock jumped 7.6% and traded at Rs 2,624.85.
Activity Seen in Other Defence Companies
Not just Cochin Shipyard and GRSE, but shares of Bharat Electronics Limited (BEL), Hindustan Aeronautics Limited (HAL), Mazagon Dock, and Paras Defence and Space Technologies also experienced a rally. During the trading session, these companies' stocks saw an upward movement of up to 3%.
The rally in the defense sector comes at a time when the Ministry of Defence is considering the procurement of 114 Made-in-India Rafale fighter jets for the Indian Air Force. This project is estimated to be worth over Rs 2 lakh crore. It involves potential participation from Dassault Aviation and Indian partners. A significant aspect of this project is the target of 60% localization. If approved, the number of Rafale aircraft in the Indian Air Force's fleet would increase to 176.
BEL Receives New Order
Another major reason for the surge in defense stocks was the new order received by Bharat Electronics Limited. The company announced that it had secured new orders worth Rs 712 crore since September 1, 2025. Following this news, BEL's shares saw a strengthening of up to 3% during trading hours today.
Long-Term Strength in Defence Sector
Market analysts believe that the defense sector is positioned very bly for the long term. However, investors need to exercise caution at current valuations. Market expert Nishchal Maheshwari stated that the defense sector has a very long runway and b order visibility. In such a scenario, investors should wait for the right entry point.
Hindustan Aeronautics currently has an order book of Rs 2 lakh crore. Mazagon Dock and Cochin Shipyard have backlogs of Rs 50,000 crore to Rs 70,000 crore, respectively.
Growing Strength of the Defence Sector
Amanish Agarwal of Prabhudas Lilladher described the defense sector as a structural story. He believes that this sector can experience sustained growth for a long period. On the other hand, veteran investor Ajay Bagga has termed it a multi-decade opportunity. He opines that initiatives like 'Make in India' and 'Atmanirbhar Bharat' are providing significant impetus to this sector.
