Shares of Indian defence companies rebounded on Thursday as escalating tensions between Israel and Iran revived investor interest in the sector.
Israel reportedly targeted Iran’s Arak heavy water reactor earlier in the day. According to the Associated Press, there was “no radiation danger whatsoever” and the facility had been evacuated prior to the strike. Meanwhile, an Iranian missile struck a major hospital in southern Israel, causing “extensive damage,” officials said.
The sharp rise in defence stocks is being seen as a reaction to renewed concerns over geopolitical instability, which tends to increase focus on defence exports and related spending globally, including in India.
The Nifty Defence index rebounded after falling nearly 0.5 percent in the previous session. Ten of the 18 index constituents were trading in the green during the day.
DCX Systems led the gains, rising 6.51 percent to touch an intraday high of Rs 310.95 on the NSE. The stock bounced back after two straight sessions of losses.
Paras Defence and Space Technologies and Mazagon Dock Shipbuilders also advanced, gaining up to 2.24 percent and 0.56 percent, respectively.
Other notable gainers included Mishra Dhatu Nigam, Bharat Dynamics, Data Patterns (India), and Bharat Electronics, which rose up to 0.28 per cent.
The seventh day of conflict between Israel and Iran came a day after Tehran's supreme leader rejected US calls for surrender and warned that any military involvement by the Americans would cause “irreparable damage to them”.
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