Defence stocks surge on Middle East tensions! HAL, BEL, Paras Defence rise up to 13% even as stock market crashes
Times of India
by TOI BUSINESS DESKMarch 2, 2026
AI-Generated Deep Dive Summary
Defence stocks in India saw a remarkable surge on Monday despite broader market declines, driven by escalating tensions in the Middle East following the death of Iran’s Supreme Leader Ayatollah Ali Khamenei. Companies like Hindustan Aeronautics (HAL), Bharat Dynamics Limited (BEL), and Paras Defence recorded gains as high as 13.5%, defying the crash in indices like Nifty50 and BSE Sensex. Investors are pinning hopes on increased export opportunities for Indian defence firms amid rising geopolitical tensions, which have also strengthened sentiment towards the sector.
The rally was further bolstered by recent developments, including Prime Minister Narendra Modi’s visit to Israel, where both countries agreed to deepen collaboration in defence production, technology transfer, and joint development. This strategic partnership is expected to enhance India’s defence capabilities and open new avenues for export, aligning with global demand amid regional instability. Brokerage house JM Financial highlighted that Indian defence companies could benefit from this sentiment even as global risk aversion persists.
The defence sector has been volatile in recent months, with last year’s targeted strikes by Indian armed forces against terrorist groups sparking a rally. However, the lack of new catalysts had dampened momentum until now. Analysts suggest that while the escalating conflict in the Middle East could drive further gains for defence counters, broader equity markets may remain subdued due to global risk-off sentiment.
This surge in defence stocks underscores the sector’s resilience and its strategic importance in times of geopolitical uncertainty. For investors, the rally highlights the potential of
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Originally published on Times of India on 3/2/2026