Shares of Indian defence companies continued their upward momentum for the second consecutive session on March 5, supported by ongoing geopolitical tensions in the Middle East and expectations of stronger order inflows that could support earnings growth in the coming quarters.
The Nifty India Defence index was trading around 8,218.95, up about 1.62%, reflecting broad-based buying across defence counters during early trade.
Among individual stocks, Data Patterns (India) rose nearly 4%, while MTAR Technologies gained around 3%. DCX Systems advanced close to 3%, and Paras Defence and Space Technologies climbed over 2.5% in the session.
Other defence-related companies also traded higher. Solar Industries India rose about 2.5%, while Astra Microwave Products gained around 2%. Mazagon Dock Shipbuilders and Zen Technologies also registered gains of nearly 2%, while Bharat Dynamics edged higher in early trade.
Market participants said the continued buying interest in defence stocks is being supported by heightened geopolitical tensions in the Middle East, which have strengthened sentiment around defence spending globally.
Analysts also noted that expectations of stronger order inflows across the defence sector could support earnings visibility for companies in the coming quarters. Improved order pipelines are likely to translate into better revenue growth and execution momentum, which could result in a stronger performance in the fourth quarter for several defence companies.
The sector has remained in focus in recent months as India continues to increase its focus on indigenisation of defence manufacturing and domestic procurement, which has supported long-term growth prospects for listed defence players.