New Delhi, May 9 – As border tensions between India and Pakistan escalate, shares of defense-related companies witnessed a sharp rally on Friday, bucking the overall downward trend in the broader stock market. Despite pressure on benchmark indices, investors flocked to defense sector stocks, anticipating increased government focus and spending on national security.
As per agency report, the Indian Army confirmed that Pakistani forces attempted multiple drone and weapon-based attacks across the western border during the night of May 8–9, all of which were “effectively neutralized.” The development sparked investor interest in defense manufacturing and technology firms.
On the Bombay Stock Exchange (BSE), several defense companies posted notable gains. Paras Defence and Space Technologies Limited surged 7.18 percent, Bharat Dynamics Limited rose 5.34 percent, Bharat Electronics Limited gained 2.92 percent, Hindustan Aeronautics Limited added 1.84 percent, and Garden Reach Shipbuilders and Engineers Limited increased by 1.38 percent.
Drone manufacturer IdeaForge Technology Limited saw a dramatic 20 percent jump, while DroneAcharya Aerial Innovations Limited climbed 4.99 percent, reflecting investor optimism over the growing relevance of drone technology in modern warfare and surveillance.
Siddharth Khemka, Head of Research (Wealth Management) at Motilal Oswal Financial Services, noted, “Given the current geopolitical developments, expectations of increased defense expenditure have led to strong momentum in defense stocks.”
Ajit Mishra, Senior Vice President (Research) at Religare Broking, echoed the sentiment, highlighting the strong performance of stocks like Bharat Electronics and Hindustan Aeronautics due to anticipated boosts in defense allocations.
