Defence Stocks Up ~13.5%on Iran-Israel War Tensions
- By Kotak News Desk
- 02 Mar 2026 at 6:57 PM IST
- Market News
- 4m
Defence shares jumped as Iran-Israel tensions rose. Tejas Networks and Paras Defence surged up to 13.5%. The Nifty India Defence Index has gained 5% this year on risk and export optimism.
Defence stocks jumped on 2nd March, amid rising tensions in the Middle East. The move came as investors factored in the possibility of fresh export opportunities for Indian defence manufacturers if the conflict leads to higher global procurement.
Which Stocks Led The Surge?
Traders pushed the segment up sharply as concerns over a widening conflict filtered through global markets.
Tejas Networks | 14% |
Paras Defence and Space Technologies | 13.5% |
IdeaForge Technology | 8.3% |
Bharat Electronics (BEL) | 3.5% |
Hindustan Aeronautics (HAL) | 3.5% |
Bharat Dynamics | 3.5% |
Data Patterns | 4% |
What Led This Surge?
Tensions in West Asia worsened over the weekend after US and Israeli strikes targeted sites in Iran, marking a sharp escalation in hostilities.
Iran took actions in retaliation, which, according to some reports, also impacted locations beyond Israel, causing alarm in some areas of the Gulf.
Many watching the situation think the clash won’t drag on for long. They point to the clear gap in military strength and the mounting pressures inside Iran’s own leadership as reasons it’s likely to stay contained.
Hezbollah claimed responsibility for launching rockets and drones toward Israeli territory after reports of the killing of Iran’s Supreme Leader, Ayatollah Ali Khamenei.
Is The Defence Index Leading Gains?
The Nifty India Defence Index has outperformed the broader market in the first two months of the year, advancing about 5%. The rise has been driven by sharp gains in several key constituents.
MTAR Technologies | 57% |
Bharat Forge | 30% |
Data Patterns | 30% |
Bharat Electronics (BEL) | 11% |
Hindustan Aeronautics (HAL) | 3.5% |
Bharat Dynamics | 3.5% |
Data Patterns | 4% |
Among the three companies, MTAR Technologies has been the best performer, while Bharat Forge and Data Patterns have also delivered strong double-digit returns. Semiconductor Bharat Electronics has also made decent gains, but not quite at the level of its peers.
How Strong Are India–Israel Ties?
The recent US and Israeli strikes on Iran took place shortly after Prime Minister Narendra Modi’s visit to Israel in late February.
During the visit, plans to deepen defence ties, including cooperation in joint development, manufacturing, and technology transfer, were discussed.
A joint statement issued after the meeting outlined broader areas of collaboration.
An agreement was reached between the two countries to co-develop and produce defence equipment, carry forward the discussion on a bilateral trade agreement, deepen their collaboration under the UPI digital payments system, and look at the possibility of partnering in space and new technologies.
Also Read - Post-Market, 2 March 2026: Why Markets Fell Today?
What Can Investors Expect?
Market participants may track whether the recent momentum in defence stocks sustains or moderates once immediate geopolitical reactions settle. Price behaviour for the next few sessions can show if the rally was mainly due to short-term sentiment or longer-term positioning.
News from West Asia will still be the main factor, especially if there is any indication of further escalation or de-escalation.
Announcements related to global defence spending, export approvals, or fresh order inflows for Indian companies may also influence valuations.
Sources:
- ET
- Livemint
- Times now
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