US-Iran War Impact: Defence Shares Outperform Broader Stocks on Monday

Mumbai, March 2: The defence stocks traded higher on Monday as markets opened on the backdrop of the escalating geopolitical tensions in the Middle East. The possibility of a wider regional conflict is influencing investors’ sentiment as the military actions of the US and Israel governments against Iran loom large.

While the broader stocks were in jitters and down in the morning, most of the defence stocks opened in the green. Stocks like Hindustan Aeronautics Ltd (HAL), Bharat Electronics Ltd (BEL), Bharat Dynamics Ltd (BDL), Para Defence & Space Technologies and Solar Industries were up in the morning and were still holding up till 3.40 pm on Monday.

In the early sessions, the Nifty India Defence was higher 1.1%, while the Nifty 50 was down 1%, according to NSE. According to data, the Nifty India Defence was down 0.62% and rose again at 2.07 pm. It was trading 0.33% higher at 2.58 pm. According to the data available on NSE, eight stocks in the index were in the green as against the other eight stocks in the red.

In the early trade, HAL was trading 1.70% higher on NSE today. The stock had been in green till 3 pm on Monday.

On Friday, HAL shares opened at around ₹4,001 and closed lower at ₹3,913, with the stock falling from its opening price and ending the session below where it began.

On Monday, BEL opened around ₹438.00 on the NSE and was trading around ₹442.10 during the session with marginal buying interest after recent strength in defence names with the stock’s price holding above its previous close as investors reacted to good sentiment in the sector. At 3.26 pm, it was trading at Rs 454 on NSE.

BDL opened strong in the early trade on Monday as the stock rose 3.90% to ₹1,314.50. Somewhere at 2 pm, it dropped 1% to ₹1,252. It was last trading 0.22% at ₹1,268 on NSE.

Paras Defence & Space Technologies opened near around ₹636.00 after closing near ₹637.80 in the previous session and during the session on Monday moved up to the high of ₹722.50, showing the renewed interest in buying amid the rising tensions in the Middle East.

Solar Industries India shares opened around the level of ₹13,099.00 and trade relatively higher around ₹13,800 – ₹14,000 levels; the stock was still at an elevated level with investors monitoring the industrial and defence linked demand outlook. Its previous closing on Friday was ₹13,504.