India-Pakistan war: These 5 defense stocks are seeing huge growth in India

Today (May 9, 2025), a particular segment in the stock market has caught the attention of both investors and analysts — defense stocks. While other sectors are in the red, the shares of defense sector companies are seeing a rise. What is the reason behind this sudden surge? And is it an investment opportunity or an emotional reaction? Let’s understand in detail.

Let’s know in full detail

 

• Defence stocks rise

India-Pakistan tension: On the verge of war?

The recent military tension between India and Pakistan has influenced the market direction. According to media reports:

Pakistan targeted military bases like Jammu, Pathankot and Udhampur.

The Indian Air Force retaliated under “Operation Sindoor” and attacked terrorist camps in PoK and Pakistan.

 

Due to these events, it is natural for investors to be inclined towards companies related to the defense sector, because in such situations defense production, supply and government procurement increase.

 

• These defense stocks gained?

Company Name Percentage of gain Key Products/Services

 

Bharat Dynamics (BDL) +3% missile systems, torpedoes

Hindustan Aeronautics (HAL) +2.2% fighter aircraft, helicopters

Bharat Electronics (BEL) +2.1% Radar, electronic warfare systems

Mazagon Dock +1.8% Submarine, warship construction

Paras Defence +3% Defence technology, limited production

ideaForge Technology +14% Drones and Surveillance Technology

 

This surge is not only due to the current tensions but is also a result of the government’s policies to make the defence sector self-reliant.

 

• Government strategy and defense sector

 

The Government of India has been emphasizing on defense manufacturing under “Make in India” and “Atmanirbhar Bharat” for the last few years. This has led to a continuous increase in the order book of defense companies.

 

Reduction in foreign imports: India is now manufacturing most of the defence equipment itself.

Incentives to private companies: Companies like Paras Defence, ideaForge are getting government support.

Drone Policy: The Government of India has expanded the use of drones for surveillance and security.

 

• What is the lesson for investors?

 

Invest strategically, not emotionally

Not every boom means a good investment.

Keep a long-term strategy in the defense sector.

Check the order book, delivery capacity and fundamentals of the companies.

 

 

Who to give preference to?

Government companies like HAL and BEL which have been providing reliable delivery for a long time.

ideaForge Like tech-innovative companies that have unique products.

 

• What is the risk?

The future is uncertain: This boom could also be temporary if tensions subside too quickly.

Political Interference: Changes in government policies can impact these companies.

Valuation: Some stocks are already overvalued, valuation is important before investing.

 

Latest update:- Last night, Pakistan carried out drone attacks on many places in India, including Jaisalmer and other places, which were completely foiled by the Indian defense system.

Full conclusion: what to do?

Defense stocks are in the news right now, but invest carefully before making any investment decision.

If you are a long term investor and want stability in your portfolio, adding strong defense companies to your portfolio can be a wise move. However, investing without research just by looking at the market movement can prove to be harmful.

 

Frequently Asked Questions (FAQs)

Q1. Should you buy defense stocks now?

If you are a long term investor and take decisions based on research then yes, but avoid short term trading.

 

Q2. Which is the safest defense stock?

Government companies like BEL and HAL are considered more stable.

 

Q3. Is this uptrend sustainable?

This uptrend could continue if the Indian government increases its defence budget and the tensions continue.