Mazagon Dock shares rallied 8.49% on Tuesday to hit a fresh 4-month high of ₹3,022.90 on the NSE, extending gains for the second straight session. The stock opened at ₹2,817.90 and closed at ₹3,007.50, up 7.94% from its previous close of ₹2,786.30, buoyed by strong buying interest. The stock has risen over 35% this year.
The defence PSU now commands a market capitalisation of ₹1.21 lakh crore. In the broader market, several defence-related companies posted strong intraday gains today. Bharat Dynamics Ltd rose 5.25%, Paras Defence and Space Technologies surged 13%, Hindustan Aeronautics Ltd jumped 15%, Data Patterns (India) Ltd climbed 12%, and Bharat Electronics Ltd added 11%.
The sharp uptick reflects renewed institutional interest in defence PSUs amid growing confidence in the sector’s long-term prospects. Over the last two days, defense stocks have surged sharply, as investor sentiment was buoyed by rising regional tensions and optimism surrounding a major defense deal.
India-France pact boosts defence stocks
The rally gained momentum after the Indian Navy signed a ₹ 63,000 crore agreement with France’s Dassault Aviation for the procurement of 26 Rafale-M fighter jets. The deal includes 22 single-seat jets and four twin-seat trainers, with deliveries expected to begin in 2031. Seen as a strategic upgrade to India’s naval air power, the development has energized buying across defence counters.
Market participants attribute the rally to multiple tailwinds, including heightened focus on naval modernization, robust order books driven by the Indian Navy and export contracts, and expectations of new shipbuilding and submarine deals in FY26. The security landscape in Jammu and Kashmir has grown increasingly tense following a deadly terrorist attack in Pahalgam on April 22, which claimed the lives of 26 individuals, including 25 tourists and one local resident. In response, the Indian government has announced a series of strong retaliatory measures aimed at isolating Pakistan diplomatically and economically.
These include the suspension of the Indus Water Treaty, closure of the Attari-Wagah border crossing, restrictions on SAARC visas for Pakistani nationals, and the expulsion of Pakistani military advisors. The heightened tensions have added a fresh layer of urgency to India’s defense preparedness, further energizing activity in defense-linked stocks. As the situation develops, Defence Minister Rajnath Singh is expected to brief Prime Minister Narendra Modi today on the latest security assessments and policy responses.
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