Defence Stocks At New Highs: Mazgon Dock to Cochin Shipyard gain up to 17%, extend 2023 surge

Shares of Cochin Shipyard are also trading with gains of 17 percent and at a record high. The stock crossed the Rs 1,000 mark for the first time since its listing in 2017. Shares had gained 35 percent in the month of August, which turned out to be the best month in the stock's history as a public company. The previous high was 33.5 percent in June 2020.

Cochin Shipyard shares are also up for the seventh day in a row. The stock has nearly tripled from its IPO price of Rs 434. Shares have more than doubled this year, making 2023 the best year for the company since listing.

Garden Reach Shipbuilders, a peer of Cochin Shipyard has also seen shares advancing as much as 12 percent to Rs 921.55.

Other stocks like Bharat Dynamics, Shipping Corporation and Paras Defence are also trading with gains between 2.5-3.5 percent.

"One needs to be cautious because this could disappoint as well but the tailwind is extremely strong. The conviction on the tailwind is increasing not decreasing," Satish Ramanathan of JM Financial AMC told CNBC-TV18 about defence stocks in an interaction on July 20.