New Delhi, Dec. 30 -- Defence stocks are emerging as one of the market's standout performers this year, with the Nifty India Defence pack rallying 19% amid a powerful confluence of geopolitical uncertainty and policy-driven tailwinds.

Among the 18 Nifty India Defence index constituents, 14 are in the green on a year-to-date (YTD) basis, and nine have given double-digit returns, as per data from NSE. Shipbuilder Garden Reach Shipbuilders & Engineers (GRSE) emerged as the top-performing defence stock this year as it rose 45% in 2025 alone.

MTAR Technologies, Paras Defence and Bharat Electronics have seen a rise of upwards of 30%. Bharat Dynamics shares have jumped 26% and Astra Micro has rallied 24% in the same period. On the flip side, Z...