Defence Stocks Soar: Nifty India Defence Index Rises 0.6% Led By Astra Microwave And Zen Tech
By Shishta Dutta | Updated at: Jun 13, 2025 02:46 PM IST
Mumbai, June 13, 2025: The Nifty India Defence Index climbed 52.15 points or 0.60% to reach 8,712.75 on Thursday, outperforming broader markets as aerospace and defence stocks captured investor attention amidst robust sector dynamics.
As of 10:04 AM IST on June 13, 2025, the Nifty India Defence Index surged to 8,789.20, registering a gain of 128.60 points or 1.48% from its previous close of 8,660.60. The index opened at 8,500.60, touched a high of 8,795.70, and dipped to a low of 8,466.65 during intraday trade. This strong performance reflects bullish sentiment in the defence sector amid expectations of robust government spending and rising export orders.
Index Performance Snapshot
| Metric | 13-Jun-2025 | Previous Close | Change | % Change |
|---|---|---|---|---|
| Index Value | 8,712.75 | 8,660.60 | +52.15 | +0.60% |
| Day’s Range | 8,466.65 – 8,766.80 | – | – | – |
| 1-Month Return | – | – | – | +16.52% |
| 1-Year Return | – | – | – | +32.82% |
| 52-Week High | 9,195.15 | – | Near 5.2% below high | – |
| 52-Week Low | 3,374.95 | – | – | – |
At 09:33 IST, the sector displayed positive momentum with 10 advancing stocks and 8 declining.
Top Gainers in the Defence Pack (09:33 IST)
| Stock | Last Price (₹) | Change (₹) | % Change | 30D Return | 1Y Return |
|---|---|---|---|---|---|
| Astra Microwave | 1,171.00 | +41.80 | +3.70% | +25.81% | +27.30% |
| Zen Technologies | 1,968.40 | +64.40 | +3.38% | +22.80% | +84.24% |
| BDL | 1,909.60 | +38.60 | +2.06% | +7.12% | +31.64% |
| Paras Defence | 1,610.50 | +30.50 | +1.93% | +11.35% | +76.39% |
| BEL | 392.60 | +5.20 | +1.34% | +15.38% | +33.36% |
| HAL | 5,021.10 | +65.10 | +1.31% | +7.51% | +1.37% |
Stocks Nearing 52-Week Highs
- BEL is just 2.3% below its 52-week peak of ₹401.85.
- Astra Microwave lags its high of ₹1,195.90 by only 2.08%.
- Solar Industries trades within 2.6% of its annual high of ₹17,129.
This indicates persistent bullish sentiment in select names backed by solid order pipelines and Ministry of Defence partnerships.
Notable Underperformers
| Stock | Last Price (₹) | Change (₹) | % Change | 1M Return | 1Y Return |
|---|---|---|---|---|---|
| Cyient DLM | 459.50 | -8.65 | -1.85% | +0.60% | -30.83% |
| Mazagon Dock | 3,182.30 | -28.10 | -0.88% | +6.92% | +0.33% |
| MTAR Tech | 1,667.60 | -13.40 | -0.80% | +12.52% | -5.61% |
Despite some session losses, most laggards remain in positive territory for the month, highlighting ongoing medium-term strength.
Sector Overview
With a one-year return of 32.82% and a month-to-date gain of 16.52%, the Nifty India Defence Index continues to outperform as one of the top thematic sectors. Key drivers fueling this momentum include:
Strong Government Defence Spending
- The defence budget for FY 2025–26 rose to ₹6.81 lakh crore—over 13.4% of the total Union Budget—up from around ₹2.10 lakh crore in FY 2023–24.
- Public Sector Undertakings (PSUs) led domestic production, which hit ₹1.27 lakh crore in FY 2023–24, up from ₹1.08 lakh crore a year earlier.
- The Ministry of Defence signed 193 contracts worth ₹2.1 trn in FY 2024–25, the highest ever annual order flow
- Crucially, a ₹30,000 crore QRSAM missile deal and a ₹10,000 crore ammunition manufacturing pact (between Reliance and Diehl Defence) fueled sector confidence.
Defence Exports Hit New Highs
- Exports surged to ₹23,622 crore in FY 2024–25, up fourfold from ₹5,000 crore a few years ago, a remarkable 34x increase since FY 2013–14.
- India now supplies arms to 92 countries, aiming to reach ₹50,000 crore in exports, with a longer-term target of ₹3 lakh crore by 2029.
- The government’s goal to double exports to $6 billion (~₹50,000 crore) by 2029 underscores the industry’s long-term momentum.
Market & Investor Response
- The Nifty India Defence Index surged ~15% between early May and late May 2025, vastly outperforming the broader market, driven by strong inflows.
- Over the past year, it returned +32.82%, buoyed by both domestic spending and export optimism.
- Passive funds like Motilal Oswal’s Defence ETF recorded a 60% return in three months, while HDFC’s actively managed fund posted a stellar ~73% annualised return since mid‑2023
Sustained investor interest and strong earnings expectations are reinforcing the structural uptrend.
About Nifty India Defence Index
The Nifty India Defence Index is a thematic benchmark on the NSE, reflecting the performance of aerospace and defence firms, featuring leading PSUs such as BEL, HAL, BDL, and fast-growing private players like Paras Defence, Astra Microwave, and Data Patterns.
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