The recent escalation in tensions between India and Pakistan, marked by the launch of “Operation Sindoor” by the Indian Armed Forces, has triggered a notable reaction across the financial markets.
“Operation Sindoor” — widely viewed as a necessary and preemptive military strike against hostile Pakistani terror infrastructure in response to the Pahalgam attack — is already influencing investor sentiment globally.
Here’s a strategic breakdown of which sectors may benefit in the event of an India vs Pakistan war:
I. Defence & Aerospace sector
With “Operation Sindoor” being executed using indigenous technologies and strategic air dominance, India’s defence manufacturing ecosystem is playing a vital role. The government is expected to ramp up defence production and fast-track procurement under the Make in India and Atmanirbhar Bharat banners.
Stocks to Watch
- Bharat Electronics Limited (BEL)
- Hindustan Aeronautics Limited (HAL)
- Bharat Dynamics Limited (BDL)
- Paras Defence and Space Technologies
- Bharat Forge Limited
These companies are central to the defence production ecosystem, offering radar systems, fighter aircraft, guided missiles, drones, and surveillance equipment. These stocks are already witnessing increased volumes and investor interest before the operation began.
II. Cybersecurity and IT sector
Modern warfare extends beyond borders into cyberspace. Cyber defence, intelligence surveillance, and digital infrastructure protection become top priorities, benefiting India’s cybersecurity and IT firms.
Stocks to Watch
These companies are positioned to support government and defence clients with secure communication, cyber intelligence, and AI-powered decision-making tools.
III. Logistics sector
War logistics require rapid, secure, and wide-reaching transport networks. Companies with national rail, road, and air freight capabilities become essential to operations.
Additionally, with direct trade and shipping routes between India and Pakistan suspended, cargo must be rerouted via transhipment hubs like Colombo (Sri Lanka), Jebel Ali (UAE), and Port Klang (Malaysia). This leads to increased demand for logistics services capable of managing longer, more complex supply chains
Stocks to Watch
These firms support the seamless movement of military goods, food, equipment, and medical supplies to critical zones.
IV. Oil & Energy sector
Oil prices typically surge during geopolitical instability, especially in South Asia. Indian oil marketing and exploration companies may experience both volatility and windfall gains from inventory revaluation.
While war can create global market instability, it also increases the demand for energy security, fuel logistics, and uninterrupted power supply, especially for military and emergency operations. As a result, several parts of the Indian energy sector could see increased activity and potential upside.
Stocks to Watch
- Oil and Natural Gas Corporation (ONGC)
- Oil India Limited
- Indian Oil Corporation (IOC)
- NTPC
- Power Grid Corporation of India
Short-term gains in oil-related stocks are likely, but the long-term impact depends on how much India’s oil & energy supply is disrupted.
Written by Shivani Singh
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