Defence Stocks Gain Up To 5% As Nifty India Defence Index Rises 1.1% In Weak Market

Sector Outperforms Broader Indices

Shares of defence companies advanced in early trade on March 2, outperforming the broader market. At 09:22 AM, the Nifty India Defence Index was up 1.1%, while the Nifty 50 was down 1%, according to NSE data.

Astra Microwave Products and Paras Defence and Space Technologies rose 5% each in intra-day trade. Bharat Dynamics Limited, Data Patterns (India) and MTAR Technologies gained 3% each. Mazagon Dock Shipbuilders, Zen Technologies, Garden Reach Shipbuilders & Engineers, Solar Industries India and Bharat Electronics Limited were up 2% each.

Order Book And Corporate Updates

ICRA said Bharat Electronics Limited had an unexecuted order book of ₹73,015 crore as of January 1, 2026. The rating agency stated this represented an order book to order inflow ratio of around 3.2 times based on FY2025 operating revenue, according to its note.

Astra Microwave Products received in-principle board approval to explore the demerger of its Space, Meteorology and Hydrology business into a separate entity named Astra Space Technologies, the company said in a regulatory filing. The proposed restructuring would result in two independently listed companies with mirror shareholding. The company stated it aims to complete the demerger and list the new entity by Q1FY28, subject to regulatory approvals.

ICICI Securities said in a note that defence contributes 72% of Astra Microwave’s current order book, with the remaining share from space and other segments.

The gains in defence counters came as global markets reacted to coordinated U.S.–Israel strikes on Iran and subsequent retaliatory action in West Asia on February 28, according to international media reports.

With the broader indices trading lower and defence stocks recording gains supported by sector-specific developments and disclosed order book data, the segment outperformed the headline indices in early trade on March 2.