India’s capital markets are seeing rising interest in defence-focused investment themes, as Axis Mutual Fund launched the Axis Nifty India Defence Index Fund, tracking the Nifty India Defence Total Return Index (TRI). The New Fund Offer (NFO) will open from April 10 to April 24, 2026, offering investors exposure to a sector witnessing strong structural tailwinds.
The launch comes at a time when global defence spending has surged past USD 2.7 trillion in 2024, supported by geopolitical uncertainties and a shift towards a multipolar global order. Reflecting this trend, Indian defence stocks have remained in focus, backed by robust policy support and rising domestic demand.
India’s defence budget has expanded nearly 2.7 times since FY14 to around ₹6.8 lakh crore in FY26, while domestic production has nearly doubled in five years. Export momentum has also strengthened significantly, rising from under ₹2,000 crore in FY17 to over ₹23,000 crore in FY25, signalling increasing global competitiveness.
The index fund will replicate a basket of defence-oriented companies across aerospace, shipbuilding and allied sectors, with semi-annual rebalancing ensuring alignment with market dynamics.
According to B. Gopkumar, the offering provides a cost-efficient, rules-based exposure to India’s defence growth story. Managed by Nandik Mallik and Rohit Gautam, the fund adopts a passive strategy, though investors should factor in potential volatility in the near term.
