By Aparna Deb,News18

Copyright news18

Indian defence stocks rallied for a fourth straight session on Wednesday, led by Cochin Shipyard and Garden Reach Shipbuilders & Engineers (GRSE), which surged up to 8% on the back of buzz around a mega fighter jet deal and optimism over the sector’s long-term growth story.
The Nifty Defence index jumped as much as 2.6% intraday. Cochin Shipyard climbed 5.6% to Rs 1,923.85, extending its winning streak to six sessions with an 18% gain over the period, while GRSE soared 7.6% to Rs 2,624.85. Hindustan Aeronautics (HAL), Mazagon Dock, and Paras Defence & Space Technologies also added 1–2%.
Rafale deal chatter
The momentum was sparked by reports that the Defence Ministry is reviewing an Indian Air Force plan to acquire 114 “Made-in-India” Rafale fighter jets in a deal worth over Rs 2 lakh crore. The project, expected to involve Dassault Aviation and domestic partners, envisages 60% localisation. If cleared, it could take India’s Rafale fleet to 176 aircraft.
Analysts cautious on valuations
Analysts remain bullish but warn against chasing stocks at current levels. Nischal Maheshwari said defence has a “very long runway” with strong order visibility, but advised waiting for a correction. HAL alone holds Rs 2 lakh crore in orders, while Mazagon Dock and Cochin Shipyard each have Rs 50,000–70,000 crore in backlogs.
Amnish Aggarwal of Prabhudas Lilladher called defence a “structural story,” while veteran investor Ajay Bagga termed it a “multi-decade opportunity,” underpinned by Make in India and Aatmanirbhar Bharat.
While execution capacity and valuations pose challenges, analysts agree that large deals like the Rafale project could further cement defence as one of the most compelling long-term themes in India’s growth narrative.
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