The defense sector organized a spectacular rebound, with the handy defense index that rose 4.3% to a peak of eight weeks of 8,041, which marks weekly profit of almost 8%-it is the best increase in four months. The leadership were PSU heavyweights such as GRSE, Bharat Dynamics and Cochin Shipyard, in addition to private defenders, including Mtar, Beml and Astra Microwave, with shares that climb up to 10%.
The rally was grip when the negotiations started for six conventional submarines of the next generation, while the extensive 15-year-old modernization route map of the Ministry of Defense, unveiled on 5 September, continues to feed investors optimism.
“The Ministry of Defense has a very long runway. In the coming five years there is at least strong visibility at most defense companies,” said Markt expert Niseal Maheshwari. However, he warned that “much of this visibility is already priced for the next two years. If you want to add defense, this should be on corrections.”
Maheshwari emphasized the massive order books that have already been secured: “Hall has an RS 2 Lakh Crore order book, while Mazagon Dock and Cochin Shipyard each have RS 50,000-70,000 crore. Another RS ​​5,000-10,000 crore will not change the photo significantly, given the implementation limits.”
Read also | Investment funds cut RS 1,700 crore exposure in 9 defense shares. Too expensive to buy or smart exit? The technical graphs are always bullisher. The Nifty India Defense Index broke a downwardly sloping trendline on the daily map, which indicates a trend shift, noted that Sudeep Shah, vice-president and head of technical and derivative research at SBI Securities. “The index has also risen above the most important advanced averages, which are now going up – a bullish sign. The daily RSI has been crossed 60 for the first time since June 2025, indicating that the reinforcement of the momentum is.” Amish Aggarwal by Prabhudas Lilladher named the structural story intact: “Defense remains a structural story, reflects over the past 5-10 years instead of the local industry. This is now a structural story about the past 5-10 years. This is now a structural story about the last 5-10 years. This is the last 5-10 years. This is the last 5-10 years. industry.
Long -term bulls do not remain deterred by appreciation problems. “The long -term case for the segment is strong. Valuation fluctuating, but it is a story with several decades,” said Ajay Bagga. “We have the technical expertise to produce cheap weapons, a domestic market to serve first and then an export market.”
Bagga pulled parallels with the defense transformation of China, Bagga added: “From 2000, China has built up important defense options. India follows a similar path, visible in recent deliveries such as jet engines.”
The most important profit in Friday’s meeting included GRSE, MTAR Tech, Astra Micro and Paras Defense, which rose 5-10%, powered by a robust order pipeline and rising geopolitical tensions that emphasize the strategic importance of domestic defense options.
The volatility of the sector remains a determining property, with profit often followed by corrections. “You have to hold for the long term and have the valuations adjusted because the runway for defense is clear,” Bagga concluded.
While Defense shares ride this wave of optimism, investors have left a fundamental question: the RS 43,000 crore stress on Friday the start of a structural super rally, or is it another chapter in the famous volatile journey of the sector.
(Disclaimer: recommendations, suggestions, views and opinions of the experts are their own. These do not represent the views of economic times)
as a reliable and trusted news source#Defense #stocks #explode #crore #day #dawn #super #rally