A sector index far from the market
On Wednesday, 29 July 2026, the Nifty India Defence closed at 9,221.30, up 19.02% for the year on price. The Nifty 50 was down 7.19% over the same months.
The index's longer record is steeper still. Our data starts on 19 January 2022, with the index at 1,380.29. It has since multiplied by about 6.7 times. Over the past three years its estimated total return was 46.94% a year.
There are six defence funds with NAVs, and only one of them is actively managed. The other five track an index, three as index funds and two as funds of defence ETFs. All figures are for the Direct plan, Growth option, from NAVs to 29 July 2026. Returns under a year are absolute; a year or more, annualised.
The six funds
| Fund (Direct, Growth) | Type | Launched | 2026 so far | 1 year | 3 years, a year |
|---|---|---|---|---|---|
| HDFC Defence | Active | Jun 2023 | 24.52% | 25.60% | 39.41% |
| Aditya Birla Sun Life Nifty India Defence Index | Index fund | Sep 2024 | 19.45% | 18.18% | |
| Motilal Oswal Nifty India Defence Index | Index fund | Jul 2024 | 19.40% | 18.20% | |
| Groww Nifty India Defence ETF FoF | ETF fund of funds | Oct 2024 | 19.31% | 17.82% | |
| Mirae Asset BSE India Defence ETF FoF | ETF fund of funds | Feb 2026 | |||
| Axis Nifty India Defence Index | Index fund | May 2026 | |||
| Nifty India Defence (est. total return) | Index | 19.40% | 18.72% | 46.94% |
The index estimate adds NSE's daily dividend yield to the price index, as we don't hold the official total return series.
HDFC Defence beat the index this year and over one year, by about five and seven points. Over three years it trailed: 39.41% a year against an estimated 46.94%.
The three index-tracking funds with a one-year record finished between 0.52 and 0.90 points behind our index estimate.
Two large falls in four years
The steep rise was not a straight line.
| Nifty India Defence | Peak | Low | Fall |
|---|---|---|---|
| 2024–25 | 8,302.03 on 11 Jul 2024 | 5,129.95 on 18 Feb 2025 | −38.21% |
| 2026 | 8,523.85 on 6 Mar 2026 | 7,214.30 on 30 Mar 2026 | −15.36% |
From the 30 March low the index rose to a record 9,728.70 on 22 June. On 29 July it was 5.22% below that record.
HDFC Defence's worst fall over its three years was 34.54%, and its annualised volatility 25.92%. The median flexi-cap fund's volatility over the same three years was 14.18%. The defence index funds, with about two years of history, show volatility near 28%.
Next to the market
| To 29 July 2026 | Nifty India Defence (est.) | Median flexi-cap fund | Nifty 50 (est.) |
|---|---|---|---|
| 2026 so far | 19.40% | 1.56% | −6.50% |
| 1 year | 18.72% | 3.72% | −1.02% |
| 3 years, a year | 46.94% | 13.35% | 8.66% |
The price of the rise
The index's P/E closed at 55.77 on 29 July. In January 2022 it was 23.14. Across our full record for this index, from January 2022, the median P/E has been 46.45 and the range 18.85 to 73.36. The highest reading came on 11 July 2024, the day of the peak before the 38% fall.
The index's P/E history is short, and it starts after NSE moved to consolidated earnings, so all of it is on the same basis.
What this does not tell you
A narrow theme, a short record. One active fund and four years of index history make a thin base. Three-year returns near 47% a year are not a rate anyone should extrapolate.
The P/E is not a timing signal. A high ratio says investors are paying a lot for current earnings. It says nothing about when, or whether, that changes.
This is not a recommendation. Nothing here is advice to buy or sell any fund named.
Where to go from here
The defence index funds are on the index fund page, and the active fund on the sectoral and thematic page. Sectoral and thematic funds covers the risks of a one-theme holding, and index funds and ETFs the passive route.
For another theme set against its index this month, see infrastructure fund returns in July. For where every NSE sector index stood on valuation at mid-year, see the cheapest and dearest NSE indices.
Frequently asked questions
How have defence mutual funds performed in 2026?
To 29 July 2026, HDFC Defence Fund (Direct, Growth), the only actively managed defence fund, was up 24.52% for the year and 25.60% over one year. The Nifty India Defence index funds were up about 19.4% for 2026 and about 18.2% over one year. The Nifty 50 was down 7.19% for 2026 on price.
How much has the Nifty India Defence index risen?
The Nifty India Defence closed at 9,221.30 on 29 July 2026, against 1,380.29 on 19 January 2022, the first close in our data. Over three years its estimated total return was 46.94% a year. It was 5.22% below its record close of 9,728.70, set on 22 June 2026.
How far have defence stocks fallen in the past?
The Nifty India Defence fell 38.21% from 8,302.03 on 11 July 2024 to 5,129.95 on 18 February 2025. In 2026 it fell 15.36% from 8,523.85 on 6 March to 7,214.30 on 30 March, before rising to a record in June.
This is commentary on published data, not investment advice. WealthTicker is not a SEBI-registered adviser or distributor. Figures are as of the dates stated and can be revised by their source.
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