Indian defence stocks experienced a notable rally, with the Nifty India Defence Index rising nearly 3% and reaching an intraday high of 7,989.80, driven by significant gains from major players such as MTAR Technologies and Solar Industries. This surge reflects heightened investor optimism fueled by global geopolitical tensions and positive domestic developments, including the Indian Army’s contract with NIBE for rocket manufacturing equipment and the Defence Acquisition Council’s approval of capital procurement proposals worth approximately ₹79,000 crore. The market’s response underscores a robust commitment to enhancing India’s defence manufacturing capabilities, amid increasing global defence spending expectations following recent international military operations.