The Impressive TimesNew Delhi : NSE Nifty Defence index emerged as the lone gainer on Monday, offering a glimmer of strength amid overall market weakness. The sectoral index bucked the broader trend, with Hindustan Aeronautics Ltd. (HAL) leading the rally, supported by optimism surrounding India’s growing focus on defence indigenisation and export orders.
Hindustan Aeronautics Ltd. (HAL) surged over 4% during intraday trade after reports surfaced indicating fresh export inquiries and continued investor interest following recent government announcements regarding defence procurement and Make-in-India initiatives. HAL’s recent delivery milestones and strong quarterly performance have also reinforced investor confidence in the stock, helping it maintain momentum even in a subdued market environment.
Other stocks within the Nifty Defence index, including Bharat Electronics Ltd. (BEL) and Mazagon Dock Shipbuilders, also witnessed moderate gains, though HAL remained the standout performer. The positive movement in these stocks is attributed to institutional interest, supported by recent policy announcements aimed at boosting private and public sector participation in defence manufacturing.
Market analysts believe that the defence sector is currently being re-rated due to the government’s continued emphasis on self-reliance, higher budget allocations, and the strategic importance of increasing domestic capabilities amid global geopolitical tensions.
“The fact that Nifty Defence is the only gainer today is a reflection of its structural strength and long-term investment narrative. Unlike other cyclical sectors, defence stocks are backed by strong order books and increasing export visibility,” said Anil Bhate, a defence sector analyst at a Mumbai-based brokerage.
Meanwhile, the broader indices – the Nifty 50 and Sensex – traded lower for most of the session, dragged by weakness in banking, IT, and FMCG sectors. Rising global bond yields, weak global cues, and cautious sentiment ahead of key macroeconomic data releases contributed to the selling pressure. The Nifty and Sensex managed to recover slightly from the day’s lows but still closed in the red.
Despite the downbeat sentiment in the broader markets, the resilience shown by the defence sector underscores its potential as a defensive play in turbulent times and its increasing weightage in institutional portfolios.
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