Stock market today: Despite the stock market crash on Wednesday, defence stocks that deal in war equipment saw strong buying interest in early morning trading. Tejas Networks’ share price, which provides critical communication infrastructure to the armed forces, surged by 8% during morning trading. Component provider to missiles and fighter jets, Paras Defence shares shot up around 8%; the leader in the anti-drone systems, Zen Technologies’ share price skyrocketed over 4%; the leading private player in industrial explosives and ammunition, Solar Industries India Ltd share price went up around 3%; and India’s leading drone maker, ideaForge Technology share price skyrocketed over 5%.
According to stock market experts, investors are looking at stocks that supply leading defence companies. They said the escalation in the US-Iran war is the major reason, and investors are now moving into core defence stocks that specialise in war. As these companies assist leading defence companies in developing war equipment such as drones, fighter jets, and missiles, investors are betting heavily on them, despite weak trends on Dalal Street.
US-Iran war: Why are war stocks rising?
On why war stocks are rising despite the stock market crash on Wednesday, Avinash Gorakshkar, a SEBI-registered fundamental equity analyst, said investors are looking at the core of defence: war. These companies act as vendors to the giant defence companies, and investors are now looking at the core of the defence segment.
“If you look at defence stocks, most of the giant defence stocks are trading in the red zone, which means buzz for the defence theme is over as the US-Iran war has escalated further, and market estimates this war to exist for a few more weeks. So, they are trying to look at those companies, which are specialised in making war equipment like drones, missiles, fighter jets, submarines, etc.,” said Avinash Gorakshkar.
Mission Sudarshan Chakar in focus
Amit Goel, Chief Global Strategist at PACE 360, said, “These war equipment maker companies are expected to benefit from the recent defence deals that the Indian government has executed with Germany, France, the EU and Israel in the last three months.”
The PACE 360 expert said that the Indian government is seriously committed to the Mission Sudarshan Chakra, which aims to develop a multi-layer air defence system in India by 2035. So, this theme might have gained momentum due to the US-Iran war, but it is likely to persist in the medium to long term, and hence, such stocks are ideal for investors looking to tweak their stock portfolios.
Stock market crash: Bloodbath on Dalal Street
Amid bloodbath on Dalal Street, the Indian stock market suffered sharp losses in morning trade on 4 March 2026, as investors continued to dump risk assets amid the ongoing US-Iran war, which shows no signs of easing.
The conflict in the Middle East around the Strait of Hormuz has pushed crude oil prices significantly higher, stoking fresh inflation concerns and dealing a strong blow to expectations of near-term rate cuts by the US Federal Reserve and the Reserve Bank of India.
Sensex crashed nearly 1,800 points, or 2.2%, to drop to an intraday low of 78,443.20, while the Nifty 50 plunged over 550 points, or 2.3%, to the day’s low of 24,305.40. The midcap and small-cap indices on the BSE crashed more than 2% each.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
