The Nifty Defence Index has taken the lead during the current market recovery phase that began on March 4, outpacing other sectors amid a correction triggered by various domestic and global factors. Since the market bottomed out in early March, the Nifty India Defence Total Return Index has recorded an impressive 17 per cent gain, followed by Nifty PSE and BSE India Infrastructure indices, which rose by 11 per cent and 10.6 per cent respectively.
Several defence stocks have posted remarkable gains since March 4. Garden Reach Shipbuilders & Engineers surged 35 per cent, while Zen Technologies and JNK India increased by 32 per cent and 30 per cent respectively. These gains were partially fueled by the European Union’s announcement of an €800 billion (approximately $850 billion) rearmament plan, which may also include support for Ukraine following the US suspension of military aid to the country.
The sector received additional momentum on March 20 when the Defence Acquisition Council approved eight major capital acquisition proposals valued at over ₹54,000 crore. These acquisitions aim to enhance the capabilities of India’s Army, Navy, and Air Force. Experts believe that the amalgamation of expanding worldwide defence allocations and India’s deliberate initiative toward autonomy in defence production is expected to boost investments in the sector.
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