Defence stocks, including Paras Defence and Space Technologies, Bharat Dynamics (BDL), Hindustan Aeronautics, Bharat Electronics (BEL), among others traded mixed on Monday amid easing geopolitical tensions between India and Pakistan.
While Zen Technologies share price jumped 5%, Paras Defence shares slumped 5%, after India-Pakistan ceasefire announcement.
The Nifty India Defence index gained 0.3%. The top gainers in the index included Data Patterns (India), Mishra Dhatu Nigam, Cyient DLM, Dynamatic Technologies and Zen Technologies – rising over 6%-5% each, followed by BEML, Unimech Aerospace and Manufacturing, Cochin Shipyard and Bharat Dynamics shares.
On the other hand, top losers included Paras Defence share price losing 5%, Astra Microwave Products, Solar Industries and Hindustan Aeronautics shares.
The defence stocks had witnessed a stellar rally last week on the back of escalation of geopolitical tensions between India and Pakistan.
The cross-border military actions last week resulted in the Indian Army’s Operation Sindoor achieving its objectives. More than 100 terrorists were killed in nine terror targets during the operation. India also shot down over 50 Pakistani drones during a large-scale counter-drone operation along the Line of Control (LoC) and the International Borders (IB).
India-Pakistan Ceasefire Impact
However, India and Pakistan have reached a ‘bilateral understanding’ to halt firing and military action on land and in air. Buoyed by the India-Pakistan ceasefire, the Indian stock market benchmark indices – Sensex and Nifty 50 – witnessed a string gap-up opening on Monday.
“The ceasefire between India and Pakistan has paved the way for a sharp rally in the market. The prime mover of the rally will be the FII buying which has been sustained for sixteen continuous days except last Friday when the conflict escalated. Domestic macros like expectations of high GDP growth and revival of earnings growth in FY26 and declining inflation and interest rates augur well for the resumption of a rally in the market,” said VK Vijayakumar, Chief Investment Strategist, Geojit Investments.
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