Europeans would need to ramp up military spending quickly, a notion that has set off a market rally, led by defense stocks.

Shares of Bharat Dynamics are down 43% from their recent peak. Shares of Garden Reach and Cochin Shipyard have more than halved from their peak, correcting up to 55%. Bharat Electronics, the Nifty 50 constituent is also down over 25% from its peak.

Trump orders pause in US military aid to Kyiv after clash with Zelensky - Trump wanted Zelensky to be ‘committed’ to the goal of a peace deal, a White House official said

Talks of a European defence pact to back a Russia-Ukraine peace deal have boosted military supply companies across the continent. Weapons companies' share prices surged across Europe and the UK's benchmark stock index reached a record high amid talk of increased defence spending.

European shares soared to record highs driven by increased anticipation of military spending. The STOXX 600 index rose 1.1%, and major European indexes closed at record levels, fueled by potential Ukraine peace proposals and intentions to boost defense expenditures across the continent.

Rheinmetall, Europe's top ammunition maker, intends to repurpose two of its automotive plants in Germany to mostly make defence equipment, highlighting the impact of an expected surge in spending in the region amid U.

A Goldman Sachs Group basket of European defence stocks rose as much as 16% to a fresh record, extending its year-to-date gain to 63%.