Operation Sindoor Impact: Defence stocks surge up to 4% as India hits terror hubs in Pakistan, PoJK

Defence stocks witnessed strong buying interest on Wednesday, May 7, after the Indian Armed Forces launched Operation Sindoor, a targeted military action against terror infrastructure in Pakistan and Pakistan-occupied Jammu and Kashmir (PoK). The market response was swift, with several defence-related companies registering gains of up to 4 per cent intraday.

Mazagon Dock, Paras Defence shine the most

Leading the pack was Mazagon Dock Shipbuilders, which climbed 3.7 per cent to hit a high of Rs 3,077.80. Shares of Paras Defence and Space Technologies followed closely, rising 3 per cent to Rs 1,393.80.

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Other key performers included:

• Hindustan Aeronautics Ltd (HAL), up 1.8 per cent at Rs 4,589

• Cochin Shipyard, gaining 2 per cent to Rs 1,511

• Bharat Dynamics, up 1.7 per cent

• Data Patterns, advancing 1.3 per cent

The broader defence index also reflected the positive sentiment, with investors flocking to stocks that are part of India’s strategic manufacturing and security capabilities.

Markets cheer India's decisive strike

The rally in defence counters came after the Ministry of Defence (MoD) confirmed that nine terror-linked sites across Bahawalpur, Muridke, and Sialkot were struck using precision-guided munitions. Importantly, Indian authorities clarified that the strikes were non-escalatory and avoided targeting any Pakistani military facilities.

“Justice is served. Jai Hind!” posted the Indian Army on X, soon after the operation. The MoD further noted that Army, Navy, and Air Force assets were synchronised for the mission, underlining the preparedness of India's tri-services apparatus.

Operation follows terror attack in Pahalgam

Operation Sindoor comes in the wake of a terror attack in Pahalgam, where 25 Indians and one Nepali national lost their lives. The response has been widely seen as a calibrated move to deter future threats while maintaining strategic restraint.

A detailed press briefing is scheduled for 10:00 AM, where more insights into Operation Sindoor’s execution and objectives will be revealed.

With defence emerging as a key theme in the wake of geopolitical tensions, analysts expect further traction in these stocks as India reinforces its military deterrence posture.