MTAR Technologies emerged as the top performer among defence stocks, gaining 3.80% to ₹7,079.50 on the NSE and advancing 3.91% to ₹7,075 on the BSE during Friday's session. The stock was trading 2.54% higher at ₹1,502 on the BSE, demonstrating strong momentum across both exchanges. Unimech Aerospace and Manufacturing shares rose 3.13% to ₹1,511.20 on the NSE, while Hindustan Aeronautics shares advanced 2.98% to ₹4,907.60 on the NSE and gained 2.35% to ₹4,892.10 on the BSE. Other notable gainers included Astra Microwave Products (2.70% to ₹1,710), Kaynes Technology (2.47% to ₹3,571), Krishna Defence (2.34% to ₹1,032.30), Mazagon Dock Shipbuilders (2.22% to ₹2,528.90), and IdeaForge Technology (1.94% to ₹791.65).
The defence sector's strong performance came amid positive broader market sentiment, with the S&P BSE Sensex gaining 0.77% to 76,739.66 and the Nifty 50 up 0.39% at 23,967.05 as of 10:55 am on September 4, 2026. According to Business Upturn, defence stocks comfortably outperformed the Nifty 50's 0.39% gain during the same period. Most listed defence shipbuilding companies participated in Friday's upward move, with Garden Reach Shipbuilders & Engineers gaining 1.24% to ₹2,541, Cochin Shipyard advancing 1.14% to ₹1,503.70, and Mazagon Dock rising more than 2%. The broad gains across the three major shipbuilding counters indicated positive trading momentum in the segment.
Defence stocks have maintained their strong performance following the Nifty India Defence index gaining 1.6% on September 4, with the latest session showing even broader participation. According to The Financial Express, Bharat Electronics shares gained 0.59% to ₹411, Data Patterns advanced 0.87% to ₹4,627.30, and DCX Systems rose 0.80% to ₹170.92. Paras Defence and Space Technologies gained 0.79% to ₹1,422.60, while Avantel was up 0.54% at ₹157.34. The rally was driven by GE Aerospace delivering three more F404-IN20 engines to Hindustan Aeronautics for the Tejas Mk1A programme, bringing total deliveries to 10 engines, with reports indicating up to 20 engines could be delivered in the second half of 2026.
Despite the broader defence rally, some stocks remained under pressure during Friday's session. Swan Defence and Heavy Industries declined 2.50% to ₹2,481, making it the biggest loser among the stocks tracked. Digilogic Systems fell 1.99% to ₹169.80, while High Energy Batteries declined 0.78% to ₹586.15 and CFF Fluid Control fell 0.73% to ₹987.25. These underperformers contrasted with the strong gains across most defence-linked companies, highlighting selective investor interest in specific segments of the defence sector.
Market analysts provided technical insights on BSE's recovery prospects. Mayank Jain, Market Analyst at Share.Market by PhonePe, noted that the stock is testing its key structural support anchored by the 200-day SMA near ₹3,265, which has provided a reliable base for accumulation. However, immediate overhead resistance persists at the 50-day SMA near ₹3,550. Ruchit Jain, Vice President, Technical Research at Motilal Oswal Financial Services, said the stock had recently corrected from a high of over ₹4,400 to around ₹3,200 and suggested that a short-term pullback can be seen if it sustains above the ₹3,200-3,150 support zone. The upward momentum also came after Sebi said it would review the methodology for determining settlement prices of derivatives contracts following the closing auction session.
