Shares of defence stocks are in action today amid signs of a US-Iran conflict, as President Donald Trump warns of 'bad things' if the Middle Eastern country doesn't make a deal. Across-the-board buying was seen in early-morning trade even as benchmark indices opened in the red. The 30-share BSE Sensex declined 291.93 points, or 0.35 per cent, to 82,206.21 in early trade. The 50-share NSE Nifty dropped 74.6 points, or 0.29 per cent, to 25,379.75. Despite this, the Nifty India Defence index was up by nearly 2 per cent. It touched a day high of 8,205.06, representing a gain of 2.11 per cent on the National Stock Exchange (NSE). At the time of writing the report, the index was up by 1.21 per cent. While the index has risen 51 per cent in a year, it remains 11 per cent below its 52-week high of 9195.15.
Top defence stocks
Among the top gainers is Data Patterns, which leads the index, gaining over 9 per cent. The stock touched the day's high of Rs 3,190, representing a jump of 9.47 per cent. Last seen, the scrip held firmly in green and was trading at Rs 3,031.30 with a gain of 4.03 per cent.
Shares of other defence companies like Paras Defence, MTAR Technologies and Garden Reach Shipbuilders, along with Bharat Dynamics, jumped around 4 per cent each. Hindustan Aeronautics (HAL) and Bharat Electronics (BEL) shares gained 2% each.
Why are defence stocks rising?
The stocks of defence companies are in action amid escalating tensions between the United States and Iran. President Donald Trump has said he hopes to reach a deal with Iran, but the talks have been deadlocked for years, and Iran has refused to discuss wider US and Israeli demands that it scale back its missile program and sever ties to armed groups.
Meanwhile, Iran held annual military drills with Russia on Thursday as a second American aircraft carrier drew closer to the Middle East, with both the United States and Iran signalling they are prepared for war if talks on Tehran's nuclear programme fizzle out.
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(This article is for informational purposes only and should not be construed as investment, financial, or other advice.)
