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News Topical, Digital Desk : After the recent surge in defense stocks, the market capitalization of all listed defense companies has reached an all-time high. All these stocks are from the Nifty India Defense Index. The total market capitalization of 18 listed defense companies has now reached Rs 11.23 lakh crore. For some time now, Indian investors' trust and interest in this sector have increased.
In July 2023, the total market capitalization of these companies was Rs 10.09 lakh crore. The special thing is that in February 2025 it was at Rs 6.95 lakh crore, from where it has increased by about 50% so far.
Sharp comeback after correction
In the month of May only, Nifty India Defense Index has seen a strong momentum of 9%. Earlier, there was a rise of 24.6% in March and 11.5% in April. According to a report by Moneycontrol, it saw a rise of 33% between July 2024 and February 2025.
After making a bottom in February, it has seen a record rise of 50%. However, one thing is also worth noting that even though this index has seen a big rise, only 6 stocks have managed to cross their earlier record level. The rest of the stocks are still below their peak.
Which stocks saw the most rise?
The spectacular rise was seen only in select defense. 10 companies reached 52-week peak in March and then this momentum was seen increasing in April. During this period, they saw a rise of 55% and 112% respectively. These good performing companies are DCX Systems, MTAR Technologies, Dyanmic Technologies, Cyient DLM, Unimech Aerospace. There are also defense manufacturing companies like Data Patterns, Mishra Dhatu Nigam, Astra Micorwave Products, HAL and BEML. Apart from this, the remaining 8 companies that touched 52-week peak in 2204 have also seen strong recovery. They have seen tremendous growth ranging from 58% to 200%. These include stocks like Cochin Shpipyard, Bharat Dynamics, Mazagon Dock Shipbuilders, Zen Technologies, Bharat Electronics, Solar Industries India, Paras Defense and Garden Reach Shipbuilders.
What is the biggest trigger for the rise in these? The biggest trigger for the recent rise in defense stocks is the recent tension between India and Pakistan. Apart from this, there has also been support from the spectacular rise in March and April after the correction. Defense stocks have also got a boost from PM Modi's statement, in which he said that the government is committed to promoting indigenous defense manufacturing. PM Modi had emphasized on promoting modern warfare capability and the strategic importance of Made in India. After India's Operation Sindoor, more than a dozen companies have shown interest in buying BrahMos missile system.
Mutual funds increased their share Mutual funds have also increased their exposure in the defense sector. In April, fund managers have increased holdings in 11 out of 18 listed defense stocks. HAL saw the highest inflow of Rs 505 crore, after which the holding of mutual funds in this stock has now increased to Rs 13,480 crore. Solar Industries saw an inflow of Rs 119 crore and now it has increased to Rs 15,510 crore. Mazagon Dock Shipbuilders saw an inflow of Rs 78 crore and now it has increased to Rs 1,727 crore.
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