India-Pakistan conflict: Defence stocks trade higher; Bharat Dynamics, Cochin Shipyard, Mazagon Dock among top gainers

Stock market today: Defence stocks saw a notable surge in Thursday's trading session, as tensions between India and Pakistan intensified following India’s most significant incursion into Pakistani territory since 1971.

Bharat Dynamics share price surged as much as 3 per cent to ₹1,492.90 on Thursday. Meanwhile, Mazagon Dock Shipbuilders and Hindustan Aeronautics shares rose 1.82 per cent and 0.64 per cent, respectively. Garden Reach Shipbuilders & Engineers gained 2 per cent, while Cochin Shipyard shares were up 1.43 per cent.

Nifty Defence index saw a significant jump of 1.10 per cent, reaching 7,016.50 on Thursday after falling by a similar quantum in the previous trading session.

On Wednesday, defence stocks tumbled sharply up to 6 per cent after Operation Sindoor. According to market experts, defence stocks have already experienced a strong rally in recent sessions, especially after the Pahalgam terror attack. Consequently, some investors are likely locking in profits or taking a cautious stance due to ongoing geopolitical tensions. Additionally, analysts point out that the high valuations of these stocks are prompting investors to stay on the sidelines.

India-Pakistan conflict

On May 7, 2025, India carried out a series of missile strikes under "Operation Sindoor," targeting nine sites Pakistan and Pakistan-occupied Kashmir (PoK), that housed militant infrastructure.

The strikes were a retaliatory response to the April 22 attack in Pahalgam, located in Jammu & Kashmir, where 26 Indian tourists were killed in an incident blamed on militant groups based in Pakistan.

“Operation Sindoor is likely to put the focus on pace of execution in the Defence companies. These companies are likely to be given aggressive execution targets which are likely to start becoming visible in a few quarters and 1-3 years time line, thus possibly boosting revenues and earnings forecast. Similarly, the companies operating in other dimensions, i.e. non-arms and ammunition, of Defence, such as, cyber security, strategic minerals & rare earths, oil & gas, hydro-projects, military EPC, military logistics and railways are also likely to see execution at a higher pace. However one should be careful to invest only at attractive valuations and in those which pass the scientific investing criteria,” said Vikas Gupta, CEO & Chief Investment Strategist at OmniScience Capital.

Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.