Mumbai, May 14 (IANS). The market capitalization of the Indian defense sector has increased rapidly since the Pahalgam terror attack. 26 people lost their lives in this terrorist attack on 22 April.
The fast began after the Indian Armed Forces launched a major accurate attack on terrorist infrastructure in Pakistan and Pakistan Occupied Kashmir (POK).
The operation with India’s largest Tri-Service Action since the 1971 war increased the confidence in defense shares to a great extent.
Despite increasing geopolitical tension, the shares of defense companies have recorded a surge.
As a result, the Nifty India Defense Index, which tracked the performance of major defense shares, recorded an increase of 9.39 percent since the introduction of military action, while the benchmark Nifty increased by 1.98 percent during the same period.
The share price of Paras Defense and Space Technologies Limited has increased by about 40 percent since April 22.
According to market data, Garden Reach Shipbuilders and Engineers Limited has increased by more than 28 percent.
All of the Alliance Corporation Limited and Bharat Dynamics also performed strongly, each of which increased by more than 26 percent.
Other notable performances include data pattern India and DCX systems, both of which have registered more than 20 percent returns.
The bounce in the region also showed the market capitalization contribution of key players. Bharat Electronics Limited (BEL) has added Rs 23,683 crore to the market price of the sector, while Hindustan Aeronautics Limited (HAL) and Bharat Dynamics have contributed Rs 21,654 crore and Rs 12,345 crore respectively.
Other companies like Majgaon Dock Shipbuilders and Solar Industries have also played an important role in total market capitalization, which have contributed Rs 9,971 crore and Rs 6,859 crore respectively.
Meanwhile, the domestic defense sector remained the best performing sector on Wednesday, which attracted the constant interest of investors, while some intra-day instability in broad markets.
-IANS
SKT/GKT
