Assessing the surge: What’s driving the exuberance in defence stocks?

News Snapshot:

Mumbai: There has been increased buying in the sector in the past one month driving up the shares of Hindustan Aeronautics Ltd, Bharat Electronics Ltd, Mazagon Dock Shipbuilders , Cochin Shipyard and Data Patterns up between 11% and 36%. What’s fascinating is, the Nifty India Defence index has shot up 14% in the past month, outpacing the Nifty 50, which has seen a mere 2% rise. Presently, much of the enthusiasm in this sector is due to recent preliminary business updates from the defence equipment manufacturers. HAL registered its highest ever revenue of over ₹29,810 crore for FY24, which implies...