Defence Stocks Surge Amidst Market Dip: MTAR Tech Jumps 6%, BEL Hits 7-Week High

• Defence shares saw strong buying on Friday, January 9, despite a general market decline, with the Nifty India Defence Index gaining 0.7%.
• MTAR Technologies surged 6.3%, Mazagon Dock Shipbuilders rose 2.5%, and Bharat Electronics (BEL) gained 2.1%, reaching a seven-week high.
• BEL's rise was fueled by new orders worth 596 crore rupees for drone detection, communication terminals, and software solutions.
• The surge is attributed to three main factors: US increasing its defence budget to $1.5 trillion for 2027, potential India-Germany submarine deal worth $8 billion, and rising geopolitical tensions over Greenland.
• The India-Germany deal could be India's largest defence agreement, including technology transfer for submarine construction, impacting Mazagon Dock Shipbuilders.

Why It Matters: Defence stocks defied market trends, driven by US budget hikes, a potential India-Germany submarine deal, and geopolitical tensions.