Defence Stocks Rally: India-Pak tension, Rafale mega-deal ignite rally; HAL, Mazagon Dock zoom

Defence stocks witnessed a sharp surge on April 28 as escalating tensions between India and Pakistan, along with a major Rafale-M acquisition deal, lifted investor sentiment. Shares of Hindustan Aeronautics (HAL), Bharat Dynamics, Mazagon Dock Shipbuilders, Cochin Shipyard, and Garden Reach Shipbuilders rallied between 5 and 9 per cent in intraday trade.

Adding to the momentum, Paras Defence and Space Technologies surged over 11 per cent, ahead of its board meeting to consider a stock split and final dividend, further exciting the markets.

The rally came after reports that Pakistan's army violated the ceasefire along the Line of Control (LoC) for the fourth time in a week. Indian troops reportedly responded "appropriately" with small arms.

The security situation turned tense after a deadly terrorist attack in Pahalgam on April 22, where 26 people, including 25 tourists and one local, lost their lives. Following this, India announced strong retaliatory measures — including the suspension of the Indus Water Treaty, closure of the Attari-Wagah border, restrictions on SAARC visas for Pakistani nationals, and expulsion of military advisors.

Defence Minister Rajnath Singh is scheduled to brief Prime Minister Narendra Modi today on the ongoing situation.

Separately, optimism in the sector was fuelled by reports that the Indian Navy is set to sign a massive Rs 63,000-crore agreement with France's Dassault Aviation for 26 Rafale-M fighter jets. The order includes 22 single-seaters and 4 twin-seater trainers, with deliveries expected by 2031.

The deal is seen as a strategic upgrade to India's naval air power amid rising regional threats, which has further energised buying across defence stocks.

HAL shares jumped over 5.5 per cent to Rs 4,433.30.

Mazagon Dock Shipbuilders gained around 5 per cent.

Bharat Dynamics rose over 6 per cent.

Cochin Shipyard surged by 7 per cent.

Garden Reach Shipbuilders zoomed 9 per cent.

Paras Defence and Space Technologies spiked over 11 per cent to Rs 1,165.95.

Meanwhile, the broader Nifty50 was also in green, up by nearly 1 per cent at 24,275.35 points during the session.

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