Ideaforge, HAL, and other defence stocks rally up to 8% as war bets heat up after Israel bombs Iran
Shares of domestic defence stocks like Ideaforge and Hindustan Aeronautics Ltd (HAL) rallied up to 8% on Friday after Israel launched a series of military strikes on Iran, reigniting fears of a broader conflict and driving investor interest in defence-linked companies.
ADVERTISEMENT Shares of Ideaforge Technology jumped as much as 8.1% on the BSE to Rs 599.60, leading gains among Indian defence stocks. Astra Microwave Products rose up to 4% to Rs 1,175, Bharat Dynamics advanced 2.9% to Rs 1,925, and Hindustan Aeronautics Ltd (HAL) climbed 1.9% to Rs 5,049.50.
The rally came after Israel carried out strikes on Iran, targeting nuclear facilities, ballistic missile production sites, and military commanders. Iranian state media confirmed that elite Revolutionary Guards commander Hossein Salami was killed, and explosions were reported near the country's main uranium enrichment site at Natanz.
'Israel said it was declaring a state of emergency in anticipation of a missile and drone strike by Tehran,' following what it described as a 'preemptive strike' against Iran's nuclear programme.Markets reacted sharply to the intensifying Middle East conflict. Asian equities dropped on Friday, Wall Street futures turned lower, and investors moved into safe-haven assets like gold and the Swiss franc. Brent crude surged 9%, rising $6 to $75.36 per barrel, while gold jumped 1.5% to $3,434 per ounce, nearing its all-time high.
ADVERTISEMENT While the Middle East conflict has triggered immediate interest in defence stocks globally, the Indian sector is also benefiting from longer-term tailwinds.Backed by India's massive Rs 16 trillion domestic defence procurement pipeline and an accelerated push for indigenisation, HAL, Bharat Electronics (BEL), and Mazagon Dock Shipbuilders have emerged as top stock picks in Antique Stock Broking's latest sector report.
ADVERTISEMENT The brokerage noted that these state-run companies are 'best positioned to capitalise on strong order inflows and expanding manufacturing capacities amid India's intensified focus on defence self-reliance and modernisation.'The Israeli assault has drawn global attention. 'Iran's elite Revolutionary Guards Corps said its top commander, Hossein Salami, was killed,' and state media reported that several children were also among the casualties in Tehran.
ADVERTISEMENT An Israeli defence official claimed that 'members of Iran's general staff, including the chief of staff and several senior nuclear scientists, were likely killed.'U.S. Secretary of State Marco Rubio said Israel's military action was a 'unilateral move' and confirmed that Washington was not involved. The strikes come ahead of the sixth round of U.S.-Iran nuclear talks scheduled to take place in Oman on Sunday.
ADVERTISEMENT As the situation unfolds, investors are closely watching for signs of further escalation and its broader implications for global security, oil supply chains, and defence sector investments.
Also read | Oil jumps more than 12% as Israel strikes Iran, rattling investors
(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times)
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