Defence stocks fire up! Paras Defence, BEL, GRSE, other stocks surge up to 24% in 2 days. What's powering the rally?

Indian defence stocks rallied sharply, with the Nifty India Defence index gaining about 5% over two sessions to 9,568. The surge was powered by government data showing indigenous defence production hit a record Rs 1.78 lakh crore in FY26, up 15.6% year-on-year and 110% higher than FY21, with the private sector's share rising to 24%. Individual stocks such as Paras Defence (up 24% in two sessions), GRSE, Data Patterns, MTAR Tech and Astra Microwave surged 7-24%, while BEL, HAL, Mazagon Dock, BDL, Cochin Shipyard and others gained 4-6%.