Defence shares surge as Middle East conflict escalates

Metro India News | new delhi

Defence stocks rallied on Monday as geopolitical tensions spiked in the Middle East following a US-Israeli strike on Iran. Ideaforge Technology led the surge, climbing 7.66 per cent, while Paras Defence and Space Technologies rose 5.95 per cent. Other gainers included Bharat Electronics (2.09 per cent), Astra Microwave Products (1.62 per cent), Taneja Aerospace & Aviation (1.34 per cent), Hindustan Aeronautics (0.96 per cent), and Bharat Dynamics (0.22 per cent) on the BSE.

During intra-day trading, Ideaforge Technology jumped 15.11 per cent and Paras Defence surged 13.14 per cent. Astra Microwave gained 4.97 per cent, Taneja Aerospace advanced 4.40 per cent, Bharat Dynamics added 4 per cent, Bharat Electronics rose 2.77 per cent, and Hindustan Aeronautics climbed 1.75 per cent.

In contrast, broader markets faced selling pressure. The BSE Sensex fell 2,743.46 points or 3.37 per cent to 78,543.73 in early trade before recovering to close at 80,238.85, down 1,048.34 points or 1.29 per cent. The NSE Nifty slipped 575.15 points or 2.28 per cent to 24,603.50 during the session and ended at 24,865.70, down 312.95 points or 1.24 per cent.

The spike in defence stocks followed the killing of Iran’s Supreme Leader Ayatollah Ali Khamenei in a US-Israeli airstrike in Tehran early Saturday, confirmed by Iranian state media on Sunday. In retaliation, Iran launched missile attacks targeting Israel and other countries, intensifying fears of a broader regional conflict. Investors favored defence companies as safe-haven bets amid uncertainty, while riskier sectors bore the brunt of market selling.