Defence Stocks Rally Amid Escalation in India-Pakistan Tensions — All You Need to Know

Several defence stocks like Bharat Dynamics (BDL), Bharat Electronics (BEL), Paras Defence and Space Technologies, Zen Technologies and DCX Systems surged in the range of 4-8% in the morning trade today. The rally comes on the back of escalating tensions between India and Pakistan.

Thematic index Nifty India Defence soared about 3%. As of 10:15 am, Nifty India Defence was up by 3% at 7,086. Shares of Mishra Dhatu Nigam, Data Patterns (India), Hindustan Aeronautics (HAL), Astra Microwave Products, Mazagon Dock Shipbuilders, Cochin Shipyard, BEML and Data Patterns (India) were up between 1-2%. However, at the same Nifty was trading at 24,066, down 0.86%.

Why are defence stocks up today?

Defence stocks are rallying due to escalating cross-border tensions between India and Pakistan.

The Indian army shot close to 50 Pakistani drones operating along the Line of Control (LoC) and the International Borders (IB) on Wednesday night, ANI reported.

The centre on Thursday confirmed that the Indian Armed Forces neutralised the air defence system at Lahore.

A statement by the Ministry of Defence read, “The Indian Armed Forces targeted Air Defence Radars and systems at a number of locations in Pakistan. Indian response has been in the same domain with the same intensity as Pakistan. It has been reliably learnt that an Air Defence system at Lahore has been neutralised.”