India’s top stock gainers: Ideaforge, Yes Bank, Apollo Microsystems jump as wartime defense demand and midcap optimism drive rally

Why Did Indian Equities Surge on May 9, 2025?

Indian stock markets ended the week with renewed bullish momentum on May 9, 2025, driven by sharp gains in midcap and defense-linked stocks amid elevated geopolitical tensions with Pakistan under Operation Sindoor. The BSE Sensex rose modestly, but broader indices such as the Nifty Midcap 100 and Smallcap 250 outperformed on high volume and positive institutional flows. Defense, renewables, and niche manufacturing stocks dominated the top gainers list, with 10 of the 20 largest risers showing gains of 8 percent or more. The sharp uptick came as investors recalibrated portfolios in response to wartime procurement expectations, supportive domestic macro data, and policy continuity hopes ahead of India‘s national elections. FII inflows turned modestly positive for the week, while domestic institutional investors continued to accumulate shares in defense, energy, and banking sectors.

Why Did Ideaforge Technology Stock Jump 20%?

Ideaforge Technology Limited surged 20 percent to ₹463.50, topping the gainers list with strong institutional buying and volumes exceeding ₹515 crore. The drone manufacturer is seen as a frontline beneficiary of the Indian government’s tactical deployment strategy during Operation Sindoor. The Ministry of Defence is reportedly expediting contracts for surveillance and reconnaissance drones amid ongoing cross-border operations. Analysts highlighted that Ideaforge’s order book has expanded by nearly 2.3 times year-on-year, while its EBITDA margins remain in the 28 to 30 percent range. The company’s upcoming quarterly results are expected to confirm sequential growth in both topline and order pipeline visibility. The surge marks a 52-week high for the stock and triggered a short squeeze in the derivatives segment, adding further momentum.

Why Did Yes Bank Gain Nearly 10%?

Yes Bank Limited rose 9.98 percent to ₹20.05, with over 72 crore shares traded, making it the highest volume gainer on the day. Sentiment turned positive after the bank’s early FY26 update showed improving gross NPA ratios and a marginal uptick in net interest margins. The lender is also reported to be in advanced discussions with global private equity players to monetize a portion of equity held since the 2020 bailout. Analysts noted that the bank’s improved provisioning coverage and focus on granular retail lending are beginning to yield results. Market watchers positioned the stock as a ‘Hold’ with potential upside if return on assets crosses one percent in FY26. Domestic institutional investors were active in the counter, while retail participation remained high due to the stock’s low ticket size and turnaround narrative.

What Fueled Apollo Microsystems’ 11% Rally?

Apollo Microsystems Limited climbed 11.62 percent to ₹130.15 on heavy buying interest from defense-sector-focused funds. The company supplies key components for India’s radar, missiles, and avionics systems and is directly linked to projects escalated under Operation Sindoor. Reports suggest Apollo has been shortlisted for new projects under Bharat Electronics Limited and Hindustan Aeronautics Limited. The stock has now gained over 38 percent in the past month and is trading above key technical resistance levels. Market participants expect FY25 revenues to grow above ₹800 crore with margins in the 18 to 20 percent range. Brokerage firms are revising 12-month targets upward citing visibility into PSU and private sector defense capex.

What Is Driving Defense and Strategic Sector Stocks?

The geopolitical backdrop surrounding Operation Sindoor, which has seen India conduct airstrikes and missile interceptions targeting Pakistan-based terror infrastructure, has prompted a rotation into defense and strategic manufacturing counters. Companies like Premier Explosives Limited, which gained 18.9 percent to ₹477.50, and Paras Defence and Space Technologies Limited, which rose 8.37 percent to ₹1,473.00, benefited significantly. DCX Systems Limited also gained 8.15 percent to ₹292.00. Premier Explosives, a supplier of solid propellants and explosive materials, is expected to receive bulk orders amid accelerated military logistics procurement. Paras Defence, a supplier of electro-optic systems and space hardware, is being re-rated by analysts anticipating revenue growth exceeding 30 percent year-on-year in FY26. DCX’s specialization in interconnect solutions for aerospace and communication systems is also gaining prominence amid higher capital allocations to defense PSUs.

Which Other Midcap Stocks Saw Significant Gains?

Among the remaining top gainers, KPR Mill Limited gained 8.17 percent to ₹1,286.00 after cotton prices fell globally, boosting margins for textile exporters. The company’s Q4 earnings are due next week, with analysts expecting revenue above ₹1,100 crore and EBITDA margins to expand by 150 basis points sequentially. SJS Enterprises Limited rose 8.82 percent to ₹1,015.00, driven by order flow from premium automotive OEMs amid signs of recovery in rural demand and two-wheeler production. Investors anticipate operating leverage benefits in FY26. Mayur Uniquoters Limited advanced 12.87 percent to ₹524.00, helped by strong export demand for synthetic leather in the U.S. auto and footwear sectors. The firm’s earnings guidance projects 15 to 17 percent year-on-year growth in revenue for the next two quarters. Borosil Renewables Limited surged 9.99 percent to ₹532.65 following favorable policy action. The government’s latest solar import duty extension and capacity addition plans under the National Green Energy Mission have raised investor interest in solar glass suppliers.

What About the Speculative Gainers and Rights Issue Stocks?

Rights entitlement instruments saw aggressive speculative trades, with MAXIND-RE, GATDVR-RE, and GATECH-RE1 all jumping 25 percent, the maximum intraday allowed for RE stocks. These instruments traded under ₹0.10 per share and saw high retail churn. Such moves are typical near RE closing dates, with traders exploiting arbitrage opportunities between market price and entitlement valuations. Market experts warn that these counters are illiquid and risky for long-term holding, although they often attract short-term traders.

What Broader Economic and Policy Factors Influenced the Rally?

The gains on May 9 followed a confluence of positive domestic triggers. The Reserve Bank of India’s latest policy announcement retained the repo rate at 6.5 percent, reaffirming a data-dependent approach while expressing comfort with India’s moderating inflation trend. GST collections for April 2025 hit ₹1.76 lakh crore, reinforcing expectations of strong private consumption heading into Q1 FY26. Foreign exchange reserves rose to $652.9 billion, offering a buffer against external shocks and supporting rupee stability around the 83.20/USD mark. These fundamentals strengthened confidence in cyclical and defense-linked names, despite global headwinds such as slowing U.S. job growth and volatile crude prices.

What Does Sentiment Analysis Reveal About Institutional Activity?

According to preliminary NSE data, foreign institutional investors were net buyers to the tune of ₹1,104 crore on May 9, focusing on capital goods, defense, and renewable stocks. Domestic institutional investors, particularly mutual funds and insurers, added over ₹950 crore in equities, skewed toward midcap manufacturing and financials. Retail participation spiked in speculative counters and low-float stocks like Yes Bank and microcap RE names, with delivery percentages below 35 percent indicating short-term positioning. Broker sentiment remains moderately bullish, with top firms such as Motilal Oswal, ICICI Securities, and Nuvama Wealth revising targets upward for Apollo Microsystems, DCX Systems, and KPR Mill.

What Is the Market Outlook Following the May 9 Rally?

Looking ahead, market participants are balancing optimism in sector-specific growth stories with macro risks stemming from geopolitical escalation. While defense and renewable energy names are expected to stay in focus, profit-booking could emerge as valuations stretch in the short term. Investors are closely tracking developments in Operation Sindoor, as any escalation could further influence defense procurement cycles and disrupt regional market flows. Meanwhile, the onset of the Q4 earnings season next week will test current valuations, especially in midcap banks and consumer discretionary plays. Stocks like Ideaforge, Paras Defence, and Apollo Microsystems may continue to benefit from sustained defense spending, while banking names like Yes Bank will need to prove execution to sustain momentum. Analysts advise staying stock-specific, focusing on quality names with earnings visibility and government policy tailwinds.