Border conflict sends India's defence index to best day, week ever

Hindustan Aeronautics

16/05/2025 07:36

** India's defence index .NIFTYINDDEFENCE gains 5.3%, set for best day since launch in November 2024

** Set for near 17% surge this week, also best since launch

** Recent India-Pakistan border conflict saw PM Modi laud Made in India defence equipment, which points to further defence manufacturing focus, says Jefferies

** Adds India's plans to improve defence co-operation with several countries, rising exports, strong earnings of defence manufacturers augur well for the sector

** Its top picks: fighter jet-maker HAL HIAE.NS, defence electronics maker Bharat Electronics BAJE.NS and test equipment and military electronics maker Data Patterns DATP.NS

** Expects the trio to see order book-backed double-digit earnings CAGR through FY27

** Defence index up 16.5% YTD vs 5.7% rise in benchmark Nifty 50 .NSEI

 (Reporting by Bharath Rajeswaran in Bengaluru)

 ((bharath.rajeswaran@thomsonreuters.com; +91 9769003463;))