Defense stocks extend rally on earnings boost, spending

Defense stocks in India are stretching their rally after a record surge last week, powered by strong earnings and signs of increased spending in the sector. 

Nifty’s cohort of 18 defense-related stocks soared to a new high Monday, taking gains this year to 28 per cent — the highest among thematic gauges in India. The rally picked up pace amid India-Pakistan tensions as the neighbors conducted military strikes against each other. 

The latest boost comes from better-than-expected earnings by key index members, including Hindustan Aeronautics Ltd. The aerospace firm last week said it’s on-course to deliver 12 Tejas fighter jet after resolving engine delivery issues. Data Patterns (India) Ltd., a maker of defense and aerospace electronic systems, also posted over 60 per cent growth in net income for the fourth quarter. 

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Published on May 19, 2025