Mumbai, Jun 18 (IANS): Riding on defence sector stocks led by Hindustan Aeronautics Ltd, Mazagon Dock, Paras Defence and Cochin Shipyard, the Indian indices closed at a fresh record high on Tuesday.

Sensex gained 308 points to close at 77,301 points while Nifty reached 23,557, up 92 points.

During the day, shares of Paras Defence were locked in the 20 per cent upper circuit following two large deals.

Hindustan Aeronautics Ltd (HAL) shares were up more than 6 per cent (329 points). Garden Reach and Bharat Electricals (BEL) also saw a surge in their stocks.

HAL has received an order from the Ministry of Defence for the procurement of 156 light combat helicopters (LCH). The tender is expected to be worth Rs 45,000 - Rs 50,000 crore with helicopters to be acquired by the Indian Air Force and Indian Army.

Defence Minister Rajnath Singh has set an ambitious target to export over Rs 50,000 crore worth of defence equipment by 2028-2029.

Market analysts said that the current upsurge in the industry's optimism stems from Minister Rajnath Singh's plan to boost defence exports.

Following a strong start, the Nifty remained within a range as the index formed another day of muted movement on the daily chart.

For the last few days, Nifty has been moving sideways on an intraday basis, but eventually, it has moved up above 23,500, according to market experts.

The BankNifty index finally broke out of the resistance mark of 50,200 and managed to close above it.

“The bullish momentum is likely to continue, potentially driving the index higher towards the 51,000 mark. The undertone remains extremely bullish, and a buy approach is recommended with strong support at the 49,700 mark,” said Kunal Shah from LKP Securities.