Defence stocks gain up to 5% after PM Modi says time has come for 'Made in India' equipment

Defence stocks were trading with gains of up to 5% on Tuesday, May 13, after Prime Minister Narendra Modi, in address to the nation on Monday post the pause in India-Pakistan military action, called for "Made In India" defence equipment.

Shares of Bharat Electronics Ltd (BEL) gained 4.39% to hit an intraday high of ₹337 apiece in trade on Tuesday. Bharat Dynamics Ltd gained 6.56% at ₹1,673 apiece. Meanwhile, shares of Hindustan Aeronautics and Solar Industries were up 3.9%  and 2.24%, hitting their intraday highs of ₹4,617.1 and ₹13,587 apiece, respectively.

PM Modi on Monday in his address said Operation Sindoor against Pakistan is not over and the time has come for 'Made in India' defence equipment.

"India has showcased its excellence in new-age warfare. The time has come for 'Made in India' defence equipment," he said.

The Prime Minister said India has adopted a zero-tolerance policy towards terrorism.

His push for indigenous defence capabilities comes at a time when India’s domestic defence production has seen rapid growth. According to official data, the country’s defence manufacturing touched ₹1.27 lakh crore in FY24 — a 174% jump from 2014–15 — largely fuelled by the Make in India initiative. Defence exports also hit a record ₹21,083 crore in the same fiscal year, a thirty-fold increase over the past decade, with shipments reaching over 100 countries.

Air Marshal SB Deo (retired), former Vice Chief of the Indian Air Force, told CNBC-TV18 that the push for defence self-reliance has been underway since 2014, but the government’s approach has shifted significantly in recent years. He pointed to successful indigenous programmes like the Akash missile and the manufacturing of drones in Bengaluru as evidence that India’s industrial base is capable of meeting military demands

India and Pakistan agreed to a pause on military activity on Saturday, May 10, from 5 pm. The Director Generals of Military Operations (DGMO) held talks on Monday, May 12 regarding the same. PM Modi in his address said that going forward, India will only talk to Pakistan about terrorism and Pakistan-occupied Kashmir (PoK). "Water and blood cannot flow together," he said, referring to the Indus Water Treaty still being in abeyance post the Pahalgam terrorist attacks.

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