Defence outshines all sectors with 35% rally in 2025: What’s driving the surge and will it last?

India's defence sector has surged, outperforming all others with a 34.82% return, driven by strong PSU performance and government initiatives like Make in India. Mutual funds focused on defence have also seen impressive gains, reflecting growing investor interest. While the outlook remains positive, analysts caution about stretched valuations and potential consolidation.