Defence Stocks Rally on "Operation Sindoor" Boost; Mazagon Dock, HAL Gain

Defence stocks surged on Wednesday, May 7, 2025, fueled by positive sentiment surrounding "Operation Sindoor." The Nifty Defence index rose nearly 1%, reversing previous losses.

ck (+2%), (+1.5%), and BEL (+1.22%) were among the top gainers. The rally follows reports of "Operation Sindoor" targeting key terror headquarters after recent ceasefire violations and the Pahalgam attack. Investors anticipate increased defence production and government procurement amid heightened geopolitical tensions. This decisive action has boosted confidence in the sector's prospects after some profit-booking in the prior session. Defence stocks are now in focus due to the evolving security landscape and potential for increased government spending.