Operation Sindoor Impact On Defence Stocks
Operation Sindoor, India’s May 7, 2025, strikes on terror camps in Pakistan and PoK following the April 22 Pahalgam attack, escalated tensions, driving a 4–8% surge in defence stocks like Bharat Dynamics and Bharat Electronics on May 9, per Mint.
The Nifty India Defence Index rose 3% to 7,086, despite a 0.86% Nifty 50 drop.
The Indian Army’s counter-drone operations and neutralization of Lahore’s air defence system fueled expectations of increased defence orders.
However, experts like Avinash Gorakshakar caution against sentiment-driven buying, citing rich valuations.
Hindustan Aeronautics and Data Patterns are favored for long-term potential, but investors are advised to wait for market corrections to avoid overpaying amid short-term Operation Sindoor-driven momentum.
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