BEL, Mazagon Dock, HAL And Other Defence Stocks Rise Up To 10% Amid Middle East Tensions

Shares of Indian defence companies rose on Thursday, with several stocks gaining up to 10% during the session as investors increased exposure to the sector amid geopolitical tensions in West Asia and broader market recovery.

Among major defence companies, Bharat Electronics Limited rose up to 3.6% and emerged as one of the top gainers within the Nifty Defence index. Shares of Mazagon Dock Shipbuilders Limited gained as much as 5.3% during the session, while Hindustan Aeronautics Limited traded higher by around 0.5%, according to stock market data.

Market data showed that 16 out of 18 defence-related stocks tracked under the Nifty Defence index were trading in positive territory during the session. Only Cyient DLM Limited and Dynamatic Technologies Limited were trading lower at the time.

Broader Buying In Defence Sector

The rise in defence stocks occurred as global markets stabilised after recent volatility linked to geopolitical developments in West Asia involving the Iran, Israel and the United States.

Defence stocks in India have historically seen increased investor interest during periods of geopolitical tension because defence spending and procurement often gain attention during such developments.

The gains in the sector also followed a broader market recovery after three consecutive sessions of losses in Indian equities.

Shipbuilding Stocks Extend Gains

Shares of Mazagon Dock Shipbuilders Limited extended gains during the session and at one point rose close to 10% in intraday trade. The movement in the stock followed reports that the Indian Navy may finalise a submarine procurement programme valued at about ₹99,000 crore.

According to reports, the programme involves the acquisition of six submarines from Thyssenkrupp Marine Systems. The submarines are expected to be constructed in Mumbai with participation from Mazagon Dock Shipbuilders.

Shares of Cochin Shipyard Limited also rose more than 2% during the session following developments related to shipbuilding activity in the defence sector.

Stock market data indicated that the gains across defence companies occurred alongside broader buying interest in the sector, which lifted most constituents of the Nifty Defence index during Thursday’s trading session.