Shares of Avantel Ltd surged 11.76% to ₹136.57 in early trade on May 19 following heightened activity in defence stocks amid reports of emergency procurement by the Indian armed forces. The stock hit a high of ₹139.60, up from its previous close of ₹122.20, reflecting strong investor sentiment in the sector.
The rally comes India’s armed forces have initiated the process of emergency procurement to replenish ammunition and modernize capabilities. The emergency purchases will include loitering munitions, anti-tank guided missiles, counter-UAV systems, and artillery shells. This procurement can be done up to 15% of the defence modernization outlay, which stood at ₹1.6 lakh crore in the Union Budget.
Avantel, which specializes in wireless and satellite communication, defence electronics, radar systems, and network management software, has benefited from this renewed policy focus on defence preparedness.
The Nifty India Defence Index has surged 9% so far in May, following an 11.5% gain in April and a 24.6% rally in March. The index had earlier seen a 33% correction between July 2024 and February 2025 but has since rebounded sharply amid escalating geopolitical tensions and strong government backing for domestic defence manufacturing.
Investor interest has surged, pushing the combined market capitalization of 18 listed defence firms to a record ₹11.23 lakh crore — up 50% from February’s lows. Fund managers also ramped up holdings in April, with notable inflows in Hindustan Aeronautics, Solar Industries, and Mazagon Dock Shipbuilders.
With defence remaining a strategic priority and growing global interest in India’s military capabilities, stocks like Avantel continue to ride the wave of optimism in the sector.
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