Defence stocks soar after US raids Venezuela; BEL, Paras Defence, HAL jumps up to 5%

Defence stocks rise

• Defense stocks surged after US raided Venezuela, capturing its President and First Lady.
• Nifty India Defence index rose nearly 2 percent to its highest in over a month
• BEL, HAL, and Paras Defence shares rose significantly.

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The shares of defence companies jumped in trade on January 5 amid heightened geopolitical tensions after US raided Venezuela, abducting its President Nicolás Maduro and his wife.

The sharp rise in the share prices pushed the Nifty India Defence index up nearly 2 percent to 7,931.35, as seen at 10 am. This is the highest level seen by the index in more than a month.

US raids Venezuela:

The United States carried out operation 'Absolute Resolve', carrying out airstrikes on targets across Venezuela and capturing its President and First Lady. This came after months of mounting military and economic pressure.

US President Donald Trump said, "We are going to run the country," adding that he did not want the Maduro system to continue under a replacement leader. He repeated the framing of an interim US-led handover, "We are going to run the country until such time that we can do a safe, proper and judicious transition."

“We are going to run the country right… It’s going to make a lot of money. They stole our oil,” Trump said, adding, “We’ll be selling large amounts of oil to other countries.”

Defence stocks:

Defence stocks jumped possibly due to expectations of sustained tensions after the development. Mtar Technologies shares jumped more than 5 percent to trade at Rs 2,497 apiece. Paras Defence shares followed, rising more than 3 percent each.

Bharat Electronics (BEL) shares gained nearly 3 percent, emerging as the top gainer on Indian benchmark indices Sensex and Nifty 50. BEML, Astra Microwave Products, Hindustan Aeronautics (HAL), Bharat Dynamics (BDL), Data Patterns India and Solar Industries shares rose more than 2 percent each.

Cochin Shipyard and Garden Reach Shipbuilders & Engineers (GRSE) shares gained around 2 percent each, while Zen Technologies and Mazagon Dock Shipbuilders gained over 1 percent each.

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