Defence stocks, Sept. 5 -- BEML, Dynamatic Tech, Cochin Shipyard, and other defence constituents of the Nifty Defence index have kick-started September on a positive note after being under pressure for two straight months.

Though the sector outlook remains promising, the lofty valuations and sector rotations have kept defence stocks out of investors' radar. The easing of geopolitical tensions globally has also made these counters unattractive for Dalal Street investors.

Nevertheless, investors' interest seems to be coming back to the sector, as the shares of BEML surged 7% in the current week so far, reaching Rs.4,149 apiece. If BEML stock closes the week with a gain of over 6%, it will mark the biggest weekly gain since mid-June.

Dyna...