India launched Operation Sindoor against pakistan in the early hours of Wednesday, May 7, 2025. This was the first time since 1971 that a joint operation was carried out by all three wings of the indian Army and retaliatory attacks were carried out targeting 9 terrorist hideouts in pakistan and its occupied Jammu and Kashmir.
While Operation Sindoor caused a stir in the stock market of pakistan and investors were quite scared, the Karachi Stock Index fell sharply by about 600 points on Wednesday.
Effect of Operation Sindoor
There is a new enthusiasm in the shares of indian defence companies. Mazgaon Dock Shopbuilders jumped by 2 per cent, Bharat Electronics Limited (BEL) by one per cent and Hindustan Aeronautics (HAL) by about one per cent. The Nifty Defence Index also rose by one per cent. Apart from this, shares of Bharat Dynamics Limited (BDL) are also in focus.
HAL is an aerospace PSU in Bengaluru that manufactures light combat aircraft tejas and Sukhoi Su-30MKI. BDL manufactures target-piercing missiles, underwater weapons and akash missiles along with other weapons for the indian Army. Apart from this, BEL manufactures defense communication equipment as well as radars, naval equipment and other electronic equipment used in war.
Rush to buy defense shares
Although, there was a lot of pressure on defense stocks a day before due to geopolitical tensions, but after Operation Sindoor was launched by the indian Army, new enthusiasm is being seen in its shares.
According to experts, behind the increase in the purchase of defense stocks and the competition among investors, people are believing that there may be a huge increase in defense production in the coming days. In such a situation, the government can increase its purchase further.
click and follow Indiaherald WhatsApp channel