Defence stocks Paras Defence, ideaForge, surge up to 10% on Iran war impact

India's defence companies, Paras Defence and ideaForge Technology are trading with gains of 10% each after the escalation of the geopolitical tensions in West Asia, which have translated into a full-blown war across the region. Shares of Bharat Dynamics and Data Patterns are also trading with gains of 3% to 4%.

As per the recent updates, Hezbollah has attacked Israel in retaliation for the killing of Iran's Supreme Leader Khamenei, claiming that it has fired rockets and drones into Israel. On the flip side, the Israeli army has said that it has struck senior Hezbollah militants in the Beirut area and in Southern Lebanon.

Defence stocks generally react positively to conflicts like these as this increases the demand for defence equipment as well as the components required to manufacture them.

For the first two months of the year, the Nifty India Defence Index has already risen 5% so far, with stocks like MTAR Technologies already having risen 57% during this period. Bharat Forge shares have risen 30% so far, while those of Data Patterns, and BEL are up 30% and 11% so far during this period.

Shares of MTAR Tech are trading close to their 52-week high levels of ₹3,907, those of BEL are also nearing their record high level of ₹461. Shares of Bharat Dynamics were underperformers in the month of February. However, those of Bharat Dynamics have been underperformers in February and are also down nearly 40% from their 52-week high.