India’s Defence Stocks Surge: In a sharp market movement observed on Friday, shares of several Indian defence companies rallied up to 5% as geopolitical tensions between Iran and Israel intensified. With Israel being one of India’s key defence partners, the ripple effect of the Middle East conflict is being keenly felt across Indian defence counters.
Zen Technologies led the charge, jumping nearly 5% to trade around ₹76 per share. Paras Defence followed closely with a 2.92% uptick, trading at ₹46.20. Other prominent gainers included Astra Microwave (2.68%), Bharat Dynamics Ltd (2.53%), and BEML (2.34%).
Cochin Shipyard, DCX Systems, Mishra Dhatu Nigam (Midhani), Hindustan Aeronautics Ltd (HAL), and Bharat Electronics Ltd (BEL) also clocked gains of over 2% during the day. Garden Reach Shipbuilders (GRSE), Data Patterns, MTAR Technologies, Solar Industries, and Dynamatic Technologies were among other defence-linked firms witnessing positive momentum.
Israel-Iran Conflict Sparks Market Response
The surge in Indian defence stocks comes in the backdrop of reports from Reuters that Israel launched a significant strike targeting Iran’s nuclear infrastructure, missile sites, and military leadership. The move, labelled as part of a broader and long-term campaign, has reignited global concerns around a prolonged conflict in the region.
For India, which has deep strategic defence ties with Israel, the unfolding situation has brought investor focus back on domestic defence manufacturers, particularly those aligned with next-generation technology.
Brokerages Bullish on Defence Outlook
Brokerage firm Choice Broking released a bullish note on the defence sector on Friday, assigning upward target prices to several companies. Notably, it sees HAL reaching ₹5,570, BDL hitting ₹1,785, and BEL potentially touching ₹420. Among Tier-II players, Astra Microwave was given a target of ₹1,050, Data Patterns ₹2,915, Apollo Micro ₹200, and Azad Engineering ₹1,865. DCX Systems and Centum Electronics were also assigned optimistic targets of ₹260 and ₹2,050 respectively.
Structural Growth Backed by Policy and Demand
According to Choice Broking, India’s defence sector is currently being propelled by several structural tailwinds. These include a robust policy push under the ‘Atmanirbhar Bharat’ (self-reliant India) initiative, strong global demand, and increased capital allocation for indigenous defence projects.
The government has already approved projects worth over ₹22,500 crore through the Cabinet Committee on Security (CCS), along with additional emergency procurement worth ₹40,000–₹50,000 crore. The sector is further supported by rising export figures—India recorded all-time high defence exports of ₹23,600 crore in FY25, with increased demand from Europe amid higher defence budgets.
Additionally, Indian firms are expanding into futuristic segments like Artificial Intelligence (AI), unmanned aerial vehicles (UAVs), cyber defence, and electronic warfare—areas expected to dominate modern combat.
While near-term execution risks remain, experts believe the long-term growth story of Indian defence is on solid ground. Rising geopolitical uncertainty, both regionally and globally, could further accelerate defence procurement and R&D investments.
Domestic players, especially those catering to surveillance, drones, and tactical systems, are seen as well-positioned to benefit from the evolving landscape. Analysts emphasize that this trend not only strengthens India’s defence capabilities but also supports job creation and tech innovation in the country.
As global conflicts continue to reshape security priorities, India’s defence stocks appear poised for a sustained period of investor interest and market relevance.
