Indian defence stocks surged sharply on Monday following the US airstrikes on Iran’s nuclear facilities, with investors betting on increased global defence spending amid rising geopolitical instability. The Nifty Defence Index climbed nearly 1.4%, led by strong gains in Paras Defence, Bharat Electronics (BEL), Zen Technologies, and others.
📈 Top Gainers in Defence Sector
- Zen Technologies: Up 5% to ₹1,988
- Paras Defence & Space Technologies: Up 5% to ₹1,726
- Astra Microwave, BEL, GRSE, Data Patterns: Gained over 2%
- Mazagon Dock, Cochin Shipyard, DCX India: Rose between 1.5%–2%
- HAL, BDL, BEML: Posted marginal gains
- Solar Industries: Bucked the trend, trading slightly in the red
💣 Trigger: US Strikes on Iran’s Nuclear Sites
The rally was fueled by US President Donald Trump’s announcement that American forces had obliterated three of Iran’s key nuclear enrichment facilities using bunker-buster bombs and Tomahawk missiles. The strikes, part of Operation Midnight Hammer, have escalated tensions in the Middle East, raising expectations of higher defence budgets and order inflows globally.
🛡️ Broader Market Context
While frontline indices like the Sensex and Nifty fell over 1% amid global uncertainty, defence stocks bucked the trend, reflecting investor confidence in the sector’s long-term potential. Analysts noted that the rally follows similar surges after India’s Operation Sindoor in May and continued tensions in the Russia-Ukraine and Israel-Iran theatres.
“Geopolitical risks and a stronger push for domestic defence manufacturing have boosted investor confidence. However, elevated valuations may lead to near-term volatility,” said Ajit Mishra, SVP, Research at Religare Broking.
Stay tuned for real-time updates on defence sector movements and global market reactions.
