Abstract
The Indian defence sector has gained significant importance in recent years due to increased government spending, strategic geopolitical considerations, and policy initiatives such as Make in India and Atmanirbhar Bharat. These developments have attracted growing investor interest in defence-related equities listed on the National Stock Exchange (NSE). This study examines the volatility and return behavior of selected defence sector stocks traded on the NSE over the period May 2020 to May 2025. The research is based entirely on secondary data collected from NSE fact sheets, financial databases, and company disclosures. Ten leading defence companies were selected for analysis. Volatility and market sensitivity were measured using statistical tools such as Rate of Return, Standard Deviation, Beta, Correlation, and Regression Analysis. The findings reveal that while certain defence stocks exhibit stable growth with moderate volatility, others display high volatility driven by policy announcements, order inflows, and geopolitical events. The study concludes that defence stocks offer strong long-term growth potential but require careful risk assessment due to their event-driven nature.
Keywords
Defence Stocks, Volatility, NSE, Beta, Risk–Return, Indian Capital Market
Citations
IRE Journals:
K. Sri Harshitha "A Study on Volatility of Defence Sector Securities Traded on NSE" Iconic Research And Engineering Journals Volume 9 Issue 8 2026 Page 158-160 https://doi.org/10.64388/IREV9I8-1714126
IEEE:
K. Sri Harshitha
"A Study on Volatility of Defence Sector Securities Traded on NSE" Iconic Research And Engineering Journals, 9(8) https://doi.org/10.64388/IREV9I8-1714126
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