Defence Stocks Rally As Nifty India Defence Index Hits Seven-Month High

Defence stocks gained strongly in intra-day trading on March 5, pushing the Nifty India Defence index to a more than seven-month high of 8,579.80, according to data from the National Stock Exchange (NSE).

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The sectoral index was up about 3.4% during intra-day trade and has risen around 6% over the last two trading sessions. In comparison, the Nifty 50 index has gained less than 1% during the same period, NSE data showed.

At 11:25 AM, the Nifty India Defence index remained the top-gaining sectoral index, trading about 2.7% higher while the benchmark Nifty 50 index was down around 0.7%. The defence index was trading at its highest level since July 11, 2025.

Individual Defence Stocks Post Sharp Gains

Several defence-related companies recorded strong gains in intra-day trading on the NSE.

Shares of Mazagon Dock Shipbuilders rose about 9%, while Data Patterns (India), Bharat Dynamics, Garden Reach Shipbuilders & Engineers and MTAR Technologies advanced nearly 7% each during intra-day trade.

Other defence stocks including Solar Industries, Mishra Dhatu Nigam, Cochin Shipyard, Paras Defence and Space Technologies and BEML traded higher by around 5% to 6%.

During the session, Bharat Electronics and Data Patterns (India) also touched their respective 52-week highs on the NSE.

Data Patterns (India) reached a 52-week high of ₹3,609.50 during intra-day trade and was up around 7.5%. According to exchange data, the stock has risen about 31% in the past one month. The share price has gained approximately 159% from its 52-week low of ₹1,392 recorded on March 5, 2025.

Order Books And Defence Contracts

Data Patterns reported an order book of ₹1,868 crore, the highest in the company’s history, according to company disclosures. The order book reflects ongoing defence contracts and project execution within the sector.

In a separate development, Kalyani Strategic Systems Limited, a subsidiary of Bharat Forge, signed a memorandum of understanding with Garden Reach Shipbuilders & Engineers Ltd to collaborate on shipbuilding capabilities in marine engineering.

According to the companies’ statement, the partnership will focus on developing indigenous technologies for ship propulsion systems, steering gear and integrated platform management systems for naval and commercial vessels.

ICICI Securities said in a research note that the aggregate order backlog for defence companies stands at about 4.4 times their trailing twelve-month revenues, providing visibility for future business activity.

The brokerage also stated that Bharat Forge secured new orders worth ₹2,388 crore during the third quarter of FY26, including ₹1,878 crore from defence contracts. As of Q3FY26, the company’s defence order book stood at ₹11,130 crore, according to ICICI Securities.

Recent trading activity shows continued investor interest in defence stocks, with several companies in the sector reaching new price levels on the NSE during the session.