Midhani, BEML, other defence stocks climb up to 4% amid rising global tensions around Greenland

Defence stocks rise

• Defense stocks rose as US eyes Greenland, boosting sector optimism
• Nifty India Defence index rises 0.65%; Mishra Dhatu Nigam, Solar Industries gain
• European leaders back Greenland's autonomy, opposing US acquisition plans

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The shares of defence companies jumped in trade on January 7 amid rising global geopolitical tensions over US possibly planning to acquire Greenland.

The sharp rise in the share prices pushed the Nifty India Defence index up 0.65 percent to 7,973.95.

US planning to acquire Greenland?

The White House on January 6 announced that US President Donald Trump is discussing options to acquire Greenland, including potential use of the US military. Trump sees Greenland’s acquisition as a US national security priority which is needed to "deter our adversaries in the Arctic region," the White House said in a statement.

"The president and his team are discussing a range of options to pursue this important foreign policy goal, and of course, utilizing the U.S. military is always an option at the commander-in-chief's disposal," the White House said.

Greenland has repeatedly said that it does not wish to be part of the United States. Leaders from major European powers and Canada rallied behind Greenland, saying the Arctic island belongs to its people

"Greenland belongs to its people. It is for Denmark and Greenland, and them only, to decide on matters concerning Denmark and Greenland," said a joint statement issued by the leaders of France, Britain, Germany, Italy, Poland, Spain, and Denmark.

The rising geopolitical tensions globally may have boosted hopes for higher defence orders, in turn boosting the defence stocks.

European indices were mixed on Wednesday as investors assessed threats made by US President Donald Trump to occupy Greenland. European defence stocks were up, poised to gain for the fourth consecutive session.

Defence stocks:

Mishra Dhatu Nigam (Midhani) shares jumped more than 4 percent to close at Rs 361.25 apiece. Solar Industries India shares also gained nearly 4 percent.

BEML, Bharat Electronics (BEL), Bharat Forge and Mtar Technologies shares gained nearly 1 percent each, while Mazagon Dock Shipbuilders, Cochin Shipyard, Data Patterns (India), Hindustan Aeronautics (HAL), Paras Defence and Garden Reach Shipbuilders & Engineers (GRSE) shares closed in the green with marginal gains.

Bucking the trend, Zen Technologies and Dynamatic Technologies shares fell more than 2 percent each, while Bharat Dynamics (BDL), Cyient DLM and Astra Microwave Products shares closed in the red with marginal losses.