Defence Stocks Today: HAL, Mazagon Dock Rally Up To 7% As Nifty India Defence Index Nears 52-Week High
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Defence stocks surged up to 7% today, with HAL and Mazagon Dock among the top gainers, as the Nifty India Defence index neared its 52-week high on strong order books and record production numbers.
Defence stocks witnessed strong buying on Thursday, August 6, with shares of major listed companies rising as much as 7% as the Nifty India Defence index gained nearly 3% to move close to its 52-week high. The rally was supported by expectations of higher government spending, a strong order pipeline and positive developments around India's defence production, exports and upcoming procurement programmes.
The Nifty India Defence index rose 281.10 points, or 2.99%, to 9,677.30, placing it just over 1% below its 52-week high of 9,784.60. The index's 52-week low stands at 7,184.90.
The index has gained 5.39% over the past week, 0.44% over the past month, 5.91% over the last three months and 24.89% over the past six months. It is up 25.32% so far in 2026 and has delivered a return of 23.57% over the past one year.
Top Defence Stocks Gaining Today
Mazagon Dock Shipbuilders led the rally, surging 7.18% to ₹2,551.40. Hindustan Aeronautics Ltd (HAL) gained 6.27% to ₹4,936.40, while Garden Reach Shipbuilders & Engineers (GRSE) rose 5.19%. Mishra Dhatu Nigam (MIDHANI) advanced 5.11% and Bharat Dynamics added 5.04%.
Buying was broad-based across the sector. MTAR Technologies rose 4.99%, Cochin Shipyard climbed 4.64%, Dynamatic Technologies gained 4.36%, BEML advanced 3.36%, Paras Defence and Space Technologies rose 3.05%, Zen Technologies added 2.97% and Bharat Electronics gained 2.21%.
Apollo Micro Systems climbed 1.84%, while Solar Industries rose 1.34%. Aequs and Astra Microwave Products also traded with gains. On the other hand, Data Patterns slipped 0.02%, Axiscades Technologies declined 0.08%, while Bharat Forge was largely unchanged, edging up 0.04%.
Why Are Defence Stocks Rising Today?
According to government data, India's defence sector has recorded significant growth over the past decade, supported by higher budget allocations and policy reforms.
The defence budget has increased from ₹2.53 lakh crore in FY14 to ₹7.85 lakh crore in FY27. Indigenous defence production has risen from ₹46,429 crore in FY15 to ₹1.78 lakh crore in FY26, while defence exports have grown from ₹686 crore in FY14 to a record ₹38,424 crore in FY26. Indian defence products are now exported to more than 80 countries.
Policy initiatives such as the Defence Acquisition Procedure 2020, the Positive Indigenisation Lists and the Innovations for Defence Excellence (iDEX) programme have strengthened domestic manufacturing, encouraged innovation and increased private sector participation in the defence ecosystem.
Separately, Defence Minister Rajnath Singh said India's defence production touched an all-time high of ₹1.78 lakh crore in FY26, registering growth of 15.6% over the previous fiscal year's ₹1.54 lakh crore and an increase of 110% since FY21, when production stood at ₹84,643 crore. He said indigenous defence production has nearly quadrupled from ₹43,746 crore in FY14, attributing the growth to the government's push for self-reliance and greater participation from domestic industry.
₹30,000 Crore Drone Procurement Programme In Focus
The Defence Ministry has received around 10 bids from Indian public and private sector companies for its proposed procurement of 87 Medium-Altitude Long-Endurance (MALE) unmanned aerial vehicles for the Indian Air Force under a programme worth more than ₹30,000 crore.
MALE drones are designed to operate at medium altitudes, typically between 10,000 and 30,000 feet, and can remain airborne for more than 24 hours. They are primarily used for intelligence, surveillance, reconnaissance, target tracking, border monitoring and, in some cases, precision strikes.
Companies participating in the bidding process include Hindustan Aeronautics Ltd, Solar Defence and Aerospace, Adani Defence Systems, Tata Advanced Systems, Larsen & Toubro and Raphe mPhibr.
Defence Sector Market Cap And Index Performance
Defence-related companies added nearly ₹2.5 lakh crore in market capitalisation during the June quarter (Q1 FY27), taking the sector's combined market value to ₹12.47 lakh crore.
During the same period, the Nifty India Defence index surged around 31%, significantly outperforming the Nifty 50, which gained nearly 7%. Individual stocks including Paras Defence, MTAR Technologies, Astra Microwave Products and Apollo Micro Systems more than doubled during the quarter.
Also Read - Blue Star Q1 FY 2026-27 Results: Net Profit Falls 15% To ₹102.5 Crore, Shares Slide 4%
This article is for informational purposes only and should not be considered investment advice from Kotak Neo. For compliance T&C and disclaimers, visit www.kotakneo.com/disclaimer.
Rochelle Britto is a business journalist with 8+ years of experience in financial journalism. She covers equity markets, corporate earnings, IPOs, commodities and the economy.
As a reporter with leading business publications, she has tracked financial markets and covered sectors including banking and financial services, retail, consumer goods, advertising and e-commerce.
Outside work, she enjoys travelling, discovering local cultures and spending time in nature.
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