Data Patterns, BDL shares rise as rally in defence shares resumes after two sessions

Shares of defence equipment makers were witnessing buying interest in Thursday's session after two days of subdued trading. NIFTY India Defence index, the gauge of 18 defence related shares, rose as much as 1.34% or 116 points to hit an intraday high of 8,797.20.

All the 18 shares in the NIFTY India Defence index were trading higher led by Data Patterns' nearly 4% gain. Mishra Dhatu Nigam, Paras Defence and Space Technologies, BEML, Bharat Electronics, Bharat Dynamics, Cochin Shipyard, Astra Microwave Products, MTAR Technologies also rose between 1%-2.35%.

Defence shares came under renewed buying interest on Thursday after reports suggested that NATO members on Wednesday, June 25, agreed to increase defence spending by up to 5% of gross domestic product (GDP) by 2035. Analysts say that the hike in defence spending by NATO members augurs well for defence companies as they will be likely in fray to secure orders going ahead.

NATO leaders agreed on Wednesday on a massive hike in defence spending after pressure from US President Donald Trump and expressed their “ironclad commitment” to come to each other's aid if attacked, news agency AP reported.

The 32 leaders endorsed a final summit statement saying: “Allies commit to invest 5% of GDP annually on core defence requirements as well as defence- and security-related spending by 2035 to ensure our individual and collective obligations.”

Defence shares have been on investors radar for quite some time now as they came into the limelight post-rising tensions between India and Pakistan after an attack in Pahalgam. Global conflicts (Russia-Ukraine, Israel-Hamas) also made defence stocks attractive to the investors.

India's defence exports have risen to ₹23,622 crore in 2024-25 from ₹1,940 crore in 2014-15, the union minister had said.

NIFTY India Defence index has outperformed all the major and benchmark indices this year as it has surged a whopping 34% year-to-date, data from the National Stock Exchange showed.

As of 9:37 am, NIFTY India Defence index traded 1% higher outperforming the NIFTY50 index which was up 0.5%.