Last Updated:June 19, 2025, 13:27 IST
Shares of Indian defence companies rebounded, buoyed by escalating tensions between Israel and Iran that reignited investor interest
Defence stocks surged on June 19
Defence Stocks Rebound: Shares of Indian defence companies rebounded on Thursday, buoyed by escalating tensions between Israel and Iran that reignited investor interest in the defence sector. The renewed geopolitical conflict has heightened expectations of increased global defence spending and a stronger export push from countries like India.
According to the Associated Press, Israel targeted Iran’s Arak heavy water reactor earlier in the day. Officials said there was “no radiation danger whatsoever,” and the facility had been evacuated before the strike. In retaliation, an Iranian missile struck a major hospital in southern Israel, causing extensive damage.
The Nifty Defence index, which had fallen nearly 0.5% in the previous session, regained ground with 10 of its 18 constituents trading in the green. The surge was largely attributed to growing concerns around geopolitical instability, which tends to support stocks in the defence and aerospace sectors.
Among the top performers, DCX Systems led the rally with a 6.5% rise, hitting an intraday high of Rs 310.95 on the NSE. The stock’s rebound followed two straight sessions of decline. Paras Defence & Space Technologies and Mazagon Dock Shipbuilders also gained up to 2.24% and 0.56%, respectively.
Other notable gainers included Mishra Dhatu Nigam, Bharat Dynamics, Data Patterns, and Bharat Electronics, which edged up to 0.28% during the session.
The conflict entered its seventh day amid a sharp escalation in rhetoric. Iran’s Supreme Leader rejected US calls for de-escalation and warned that any American military involvement would lead to “irreparable damage.” This heightened uncertainty has further reinforced the defensive trade across global markets.
In addition, the Aeronautical Development Agency (ADA) has invited Indian companies to participate in the development of the indigenous fifth-generation fighter jet, the Advanced Medium Combat Aircraft (AMCA).
On Wednesday, the ADA, under the Ministry of Defence, issued an Expression of Interest (EOI).
“The Objective of this EOI is to shortlist Indian Companies (owned & controlled by resident Indian citizens) who are technically capable for the Development, building of Prototypes, supporting Flight Test and Certification of AMCA…. The duration of the contract for Development, Prototyping, Flight Test and Certification of AMCA shall not exceed eight (8) years from the effective date of contract,” the notification stated.
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Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a…Read More
Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a… Read More
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