Bullish Momentum: Why are defence stocks BEL, HAL, Astra Microwave in green today?

Synopsis: Defence stocks surged as the Nifty Defence index rose 2.6%, led by BEL, HAL, and Astra Microwave, on heightened geopolitical tensions following US military action in Venezuela, with expectations of increased global defence spending boosting investor sentiment.

Indian defence stocks rallied sharply today, with names like BEL, HAL, and Astra Microwave leading gains, as investors reacted to rising geopolitical tensions and anticipated growth in global military spending. Nifty Defence Index is up by 2.6% to 7,989.80 from the previous close of 7,786.75.

With a market capitalisation of Rs. 3,03,611 cr, the shares of Bharat Electronics Ltd are currently trading at Rs. 415 per share, increasing 4% in today’s market session, making a high of Rs. 418.50, up from its previous close of Rs. 403.10 per share.

With a market capitalisation of Rs. 3,02,850 cr, the shares of Hindustan Aeronautics Ltd are currently trading at Rs. 4,528 per share, increasing 3% in today’s market session, making a high of Rs. 4,543.90, up from its previous close of Rs. 4,417.20 per share.

With a market capitalisation of Rs. 9,436 cr, the shares of Astra Microwave Products Ltd are currently trading at Rs. 993.90 per share, increasing 3% in today’s market session, making a high of Rs. 995.35, up from its previous close of Rs. 962.70 per share.

Why defence stocks are up

Defence stocks rose sharply today amid escalating global geopolitical tensions. The Nifty Defence index saw strong buying, driven by heightened risk-off sentiment across markets. Major names like BEL, HAL, and Astra Microwave led the gains, reflecting increased investor confidence in the sector amid uncertainty.

Other defence stocks like Bharat Dynamics, Paras Defence and Space Technologies Ltd, Zen Technologies Ltd, Solar Industries Ltd also jumped up to 5%. The surge comes on the back of US military action in Venezuela. Operation Absolute Resolve saw airstrikes across the country and the capture of President Nicolás Maduro and his wife, following months of mounting military and economic pressure. 

US President Donald Trump stated that the US would “run the country” until a “safe, proper, and judicious transition” occurs and indicated plans to bring Venezuela’s oil resources under control for sale to other countries.

Market participants anticipate that global military spending will rise in response to heightened geopolitical risks, boosting demand for defence equipment and technology. This expectation of increased government and international defence expenditure is a key driver behind today’s bullish momentum in defence stocks.

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