Defence stocks: Across-the-board buying in defence stocks drove the Nifty India Defence index nearly 2% higher in early-morning trade on Friday, February 20, amid escalating US-Iran tensions.
The defence gauge jumped 2.11% to hit the day’s peak of 8,205 on the National Stock Exchange (NSE). While the index has risen 51% in a year, it remains 11% below its all-time high of 9195.
Defence stocks surge up to 9%
All constituents in the defence gauge traded in the green, with Data Patterns emerging as the best performer, surging 9% to ₹3,190.
Shares of Para Defence, MTAR Technologies and Garden Reach Shipbuilders, along with Bharat Dynamics, rose around 4% each. Hindustan Aeronautics (HAL) and Bharat Electronics shares gained 2% each.
BEML, Midhani, Mazagon Dock, and Cochin Shipyard also traded higher as all defence stocks gained traction.
At a time when escalating tensions between the US and Iran have spooked world markets and boosted oil prices, defence stocks are seeing buying. According to several media reports, military activity has stepped up in the Middle East.
US President Donald Trump warned Iran on Thursday that it must reach a deal over its nuclear program or “bad things” will happen, and appeared to set a 10-day deadline before the US might take action.
The US has deployed aircraft carriers, warships and jets to the region, with US Vice President JD Vance saying Washington was considering whether it should continue diplomatic engagement with Tehran or pursue another option, according to a Reuters report.
Iran issued a notice to airmen that it planned rocket launches in areas across the south of the country on Thursday, according to the U.S. Federal Aviation Administration website, the report added.
