Defence Stocks Rally Up to 12% on Order Wins, Dividend Record Dates

Indian defence stocks witnessed a sharp rally on Friday, September 12, with strong order wins and heavy trading volumes driving the sector higher. The Nifty India Defence index surged over 4% to 8,029.10 by 1:30 pm & closed at 8,044.70(4.38%+), supported by broad-based gains across leading defence and shipbuilding firms.

MTAR Technologies Leads the Surge

As the top performer, MTAR Technologies stock price emerged, soared nearly 10% to closed at ₹1,674.00 per share. The rally came after the company announced fresh orders worth $43.87 million (approximately ₹386 crore) from Bloom Energy Corporation earlier this week. Trading activity in the stock was robust, with volumes nearly three times higher than its 10-day average.

BEML, GRSE Extend Gains

Shares of BEML share price climbed & closed by more than 9% to ₹4,420.40, continuing their upward momentum. The surge followed reports that the government may upgrade the company from Miniratna to Navratna, a move that would provide it with greater operational and financial autonomy.

Garden Reach Shipbuilders & Engineers share price (GRSE) also advanced over 9%, with volumes nearly double its 10-day average. The rally came on the record date for determining shareholders eligible for a dividend of ₹4.9 per share.

Other Defence Stocks in Focus

Several other defence firms also saw sharp gains:

• Astra Microwave Products rose nearly 7%.
• Bharat Dynamics (BDL) climbed nearly 6% ahead of its September 19 record date for a ₹0.65 dividend per share.
• Paras Defence gained around 5% after securing fresh orders worth ₹26.6 crore from Opto Electronics Factory for supply of Electronic Control Systems used in battle tanks.
• Mazagon Dock Shipbuilders advanced 4.66%, with its dividend record date of ₹2.71 per share also set for September 19.
• Solar Industries and Cochin Shipyard shares gained up nearly to 3% & over 5% respectively, with Cochin Shipyard’s ₹2.25 per share dividend record date falling today (September 12).

Meanwhile, heavyweights like Bharat Electronics (BEL) and Hindustan Aeronautics (HAL) added over 3% each, contributing to the sector’s strong performance.

Conclusion

The rally in defence stocks highlights growing investor optimism in the sector, fuelled by strong order inflows, dividend announcements, and policy developments. With the Nifty India Defence index crossing the 8,000 mark, the outlook remains positive as both government reforms and private sector participation drive long-term growth prospects in India’s defence industry.