Defence shares extended gains for the second straight session on Friday, supported by strong buying amid the ongoing conflict in West Asia.
Shares of Bharat Electronics Ltd (BEL), Garden Reach Shipbuilders & Engineers Ltd and Mazagon Dock Shipbuilders were among the key gainers.
The Nifty Defence Index rose over 3 percent during the session, after advancing 2.5 percent in the previous trading session.
Shares of Mazagon Dock Shipbuilders and Garden Reach Shipbuilders & Engineers climbed 6.92 percent and 6.14 percent, respectively, making them among the top gainers on the index.
Shares of Mazagon Dock Shipbuilders rose the most in nine months.
Meanwhile, Defence Minister Rajnath Singh said Garden Reach Shipbuilders & Engineers has been given special focus so that the country’s industrial ecosystem becomes strong and futuristic.
Out of the 18 constituents of the Nifty Defence Index, 17 were trading in the green, while one stock was in the red. The only exception was Cyient DLM.
Escalating tensions involving Iran, Israel and the United States have renewed investor interest in defence companies.
Heightened geopolitical uncertainty typically increases focus on defence preparedness among countries, which can drive demand for equipment such as missiles, surveillance systems, drones, ammunition and radar systems. This often leads to buying in defence-linked stocks on expectations of higher orders and improved business prospects.
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