Defence-related stocks, such as Bharat Electronics and Paras Defence and Space Technologies, gained by up to 12% on Monday amid rising tensions between Iran, Israel, and the United States.

During the session, Paras Defence and Space Technologies’ stock rose by more than 13% to Rs 722.5 a share on the NSE.

Bharat Electronics shares rose about 2% to Rs 452.75 per share. Hindustan Aeronautics also traded higher, rising up to 1%.

The most recent conflict has heightened international concern about defence preparation. This could lead to an increase in demand for equipment, including missiles, surveillance systems, drones, ammunition, and radar technologies. As a result, defence-related stocks frequently see buying activity on the back of bigger orders and better business prospects.

The Nifty Defence index recovered from its previous session’s losses and surged more than 2% in intraday trade.

The rally in defence equities came as the major market indices Sensex and Nifty fell in early trade, after a strong increase in crude oil prices amid growing tensions in West Asia.

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