Cochin Shipyard, Bharat Forge, HAL, BEL, BDL, GRSE, Mazagon Dock: Why defence stocks are in focus today

Shares of defence makers including Bharat Forge Ltd, Paras Defence, Hindustan Aeronautics (HAL), Data Patterns, Bharat Dynamics (BDL), Cochin Shipyard, Mazagon Dock Shipbuilders and Bharat Electronics Ltd (BEL) are in focus today amid reports the government has asked defence equipment makers to visit New Delhi. This development came to light after CMD at Bharat Forge Baba Kalyani in an interview to CNBC TV18 said: "We’ve been called to Delhi next week. Our team is going. I can’t say more.”

He was fielding a question on whether the government had asked the defence industry participants to ramp up production amid deepening of India Pakistan tensions.

As per multiple news reports, India launched a major attack at ports of Karachi and Ormara. INS Vikrant, an indigenous aircraft carrier constructed by Cochin Shipyard, was reportedly in action. Other shipping stocks such as Mazagon Dock Shipbuilders and Garden Reach Shipbuilders & Engineers (GRSE) would, thus, also be in focus. 

Overnight, Pakistan Armed Forces launched multiple attacks using drones and other munitions along entire Western Border. Pak troops also resorted to numerous ceasefire violations (CFVs) along the Line of Control in Jammu and Kashmir. The drone attacks were effectively repulsed, Indian Army said.

ideaForge Technology Limited, an Indian unmanned aerial vehicle manufacturer, will be in focus. Bharat Forge, which offers artillery systems, ammunition, missiles and air defense solutions to the Indian Army, wiull also be in focus. 

Other key defence makers include aerospace PSU HAL that builds LCA Tejas and Sukhoi Su-30MKI. BDL offers guided missiles, underwater weapons, and allied defense equipment to the Indian Armed Forces, including Akash missiles. BEL is engaged into making of defence communication products, land-based radars, naval systems and electronic warfare systems. 

Following India's Operation Sindoor, Pakistan tried to hit military targets in as many as 15 Indian cities. This was reportedly foiled by India with the help of India’s Integrated Counter-UAS Grid and Air Defence systems. In response, the Indian Armed Forces carried out targeted strikes on Pakistan’s air defence systems—neutralising the HQ-9 unit in Lahore. 

In a series of post on X, Kotak Securities said defence stocks have historically acted as sentiment indicators during geopolitical events. Investor interest rises when national security is in focus, often leading to short-term rallies, it noted. 

"After the 2016 surgical strikes and the 2019 Balakot airstrikes, defence stocks gained rapidly, while the broader index experienced temporary volatility before stabilising," Kotak Securities said on May 7.