India’s defence sector has witnessed remarkable growth, with annual production reaching a record Rs 1.46 trillion in 2024–25, a 15 percent rise from the previous year. Defence exports exceeded Rs 24,000 crore, while the sector signed 193 contracts worth Rs 2,09,050 crore in 2024–25. The government aims for Rs 3 trillion in production and Rs 50,000 crore in exports by 2029.
Defence stocks rallied sharply on June 13, driven by escalating Israel-Iran tensions, which raised expectations of increased global defence spending. The surge ended a two-day losing streak, lifting the Nifty India Defence index by 3%, as investors anticipated higher orders for defence equipment amid rising geopolitical uncertainty and conflict preparedness.
Defence stocks, which recently saw profit booking after earlier gains from Operation Sindoor and the Russia-Ukraine conflict, have resumed their upward momentum. The renewed rally follows Israel’s attacks on Iran, reigniting investor interest amid rising geopolitical tensions and expectations of increased global defence spending and strategic preparedness.
Israel launched preemptive airstrikes targeting Iran’s key nuclear and military sites, aiming to cripple its enrichment and weaponization programs. Prime Minister Netanyahu claimed successful hits on facilities, scientists, and missile infrastructure. The strikes reportedly killed top Iranian military leaders, including armed forces chief Mohammad Bagheri and IRGC commander Hossein Salami.
In retaliation, Iran launched over 100 drones at Israel, prompting the full deployment of Israeli air defences. The Israel Defence Forces (IDF) warned of an unprecedented situation, urging citizens to remain resilient and patient amid escalating conflict and the anticipation of difficult hours ahead as tensions intensified between the two nations
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Here are the defence stocks to benefit from the geopolitical tension between Iran and Israel:
| Company Name | CMP | Increased % |
| Garden Reach Shipbuilders & Engineers Ltd | 3,107.80 | 4.35 |
| Paras Defence and Space Technologies Ltd | 1,639.00 | 3.73 |
| Bharat Dynamics Ltd | 1,908.20 | 2.14 |
| Hindustan Aeronautics Ltd | 5,044.90 | 1.79 |
| Bharat Electronics Ltd | 394.15 | 1.74 |
| Solar Industries India Ltd | 16,866.00 | 1.29 |
| DCX India | 298.55 | 2.61 |
Written by Abhishek Singh
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