Mumbai, May 14 : The Indian defence sector has witnessed a sharp rise in its market capitalisation, gaining an impressive Rs 86,211 crore since the Pahalgam terror attack, which claimed 26 lives.

The bull rally began after the Indian armed forces launched 'Operation Sindoor,' a major precision strike on terrorist infrastructure in Pakistan and Pakistan-occupied Kashmir (PoK).

This operation, India's largest tri-service action since the 1971 war, significantly boosted the confidence in defence stocks. Despite the heightened geopolitical tensions, shares of defence companies surged.

As a result, the Nifty India Defence Index, which tracks the performance of leading defence stocks, has gained 9.39 per cent since the start of the military action, a remarkable contrast to the 1.98 per cent increase in the benchmark Nifty during the same period.

Paras Defence and Space Technologies Limited led the rally, with its share price rising nearly 40 per cent since April 22. Garden Reach Shipbuilders and Engineers Limited followed closely, seeing a gain of more than 28 per cent, as per market data.

Mishra Dhatu Nigam Limited and Bharat Dynamics also posted strong performances, each rising over 26 per cent. Other notable performers include Data Patterns India and DCX Systems, both of which saw returns of over 20 per cent.

The surge in the sector has also been reflected in the market capitalisation contributions of major players. Bharat Electronics Ltd (BEL) has added Rs 23,683 crore to the sector's market value, while Hindustan Aeronautics Ltd (HAL) and Bharat Dynamics have contributed Rs 21,654 crore and Rs 12,345 crore, respectively.

Other companies, such as Mazagon Dock Shipbuilders and Solar Industries, have also played a significant role in the overall market cap gain, contributing Rs 9,971 crore and Rs 6,859 crore, respectively.

Meanwhile, the domestic defence sector remained a standout performer on Wednesday, attracting consistent interest from investors even as broader markets faced some intra-day volatility.

/IANS