Paras Defence Shares Jump 12% As Defence Stocks Rally Amid Iran Tensions

Shares of Paras Defence and Space Technologies surged over 12 per cent in early trade on Monday, leading gains in the defence sector even as the broader market remained under pressure.

By 10 am, Paras Defence was trading at Rs 714.50 on the National Stock Exchange, up Rs 76.70 for the day. Trading volumes were significantly higher than average, reflecting strong investor interest.

The rally in Paras Defence was part of a wider uptrend across defence stocks. The gains came amid heightened geopolitical tensions involving Iran, Israel and the United States, which have unsettled global markets.

The Nifty India Defence Index traded in positive territory even as benchmark indices showed weakness. Investors shifted towards defence counters, which are seen as relatively insulated from short term economic volatility due to their reliance on long term government contracts and strategic programmes.

Public sector defence companies saw steady buying. Bharat Electronics Limited moved higher on sustained demand for radar and communication systems. Hindustan Aeronautics Limited traded with gains supported by its aircraft and helicopter programmes.

Bharat Dynamics Limited also witnessed investor interest on expectations of continued missile system orders. Shipbuilding companies such as Mazagon Dock Shipbuilders and Garden Reach Shipbuilders & Engineers held firm amid a strong pipeline of naval projects.

Mid sized defence players extended the rally. Data Patterns and MTAR Technologies gained as investors backed companies benefiting from India’s push for domestic defence manufacturing.

Market participants said defence focused mutual funds have also seen steady inflows over the past year, supporting the sector during periods of volatility. Rising crude prices and geopolitical uncertainty have prompted investors to prefer companies linked to national security and government spending.

While Paras Defence led the gains, the strength was broad based across the sector. Analysts said the near term trend will depend on developments in the Middle East and movement in crude oil prices.