Defence stocks rally as ICICI Direct flags structural upcycle in manufacturing

Defence stocks recorded broad based gains as investor sentiment strengthened on expectations of a sustained growth cycle in India’s defence manufacturing sector. The Nifty India Defence index climbed nearly 2.7 percent, supported by strong buying in both PSU and private players. Shipbuilding companies led the rally, with Cochin Shipyard, Mazagon Dock and GRSE posting sharp gains amid robust order visibility. Private sector names such as MTAR Technologies, Solar Industries and BEML also moved higher. ICICI Direct highlighted improving fundamentals, long-term order pipelines and policy support as key drivers behind the renewed interest in defence stocks.