Defense related stocks surge; Ideaforge tech jumps 20%

Defence stocks surged on Friday driven by expectations of increased focus and spending in light of geopolitical tensions between India and Pakistan. Pakistan’s armed forces launched multiple attacks using drones and other munitions along the entire western border on the intervening night of May 8-9, which were “effectively repulsed”, the Indian Army said on Friday. Pakistani troops also resorted to “numerous ceasefire violations” along the Line of Control in Jammu and Kashmir, the Indian Army said in an early morning post on X.

Shares of Paras Defence and Space Technologies Ltd surged 7.18 per cent, Bharat Dynamics Ltd jumped 5.34 per cent, Bharat Electronics Ltd rallied 2.92% , Hindustan Aeronautics Ltd climbed 1.84 per cent, and Garden Reach Shipbuilders & Engineers Ltd went up 1.38 per cent on the BSE.

Drone manufacturers Ideaforge Technology Ltd zoomed 20 per cent and Droneacharya Aerial Innovations Ltd rallied 4.99%.

“Defence stocks witnessed strong momentum, buoyed by expectations of increased focus and spending in light of geopolitical developments,” Siddhartha Khemka, Head – Research, Wealth Management, Motilal Oswal Financial Services Ltd, said.

The drone attacks were “effectively repulsed” and a “befitting reply” was given to the ceasefire violations, the Indian Army said.

“#IndianArmy remains committed to safeguarding the sovereignty and territorial integrity of the Nation. All nefarious designs will be responded to with force,” it added. “…defense related stocks such as Bharat Electronics and Hindustan Aeronautics outperformed, gaining on expectations of increased defense spending,” Ajit Mishra, SVP, Research, Religare Broking Ltd, said.

The developments followed the precise missile strikes carried out by the Indian armed forces on nine terror targets in Pakistan-occupied Kashmir (PoK) and Pakistan early on Wednesday under ‘Operation Sindoor‘, in retaliation for the April 22 Pahalgam terror attack.