Mazagon Dock, GRSE, Bharat Dynamics, HAL, Other Defence Stocks Rally Amid Israel-Iran Tensions

Defence stocks in India continued their bull run on Monday, June 23, despite a massive crash in the Indian stock market today. While Nifty 50 and BSE Sensex were trading 250 and 780 points lower, respectively, defence sector stocks remained in green during the early hours of stock market opening.

Nifty India Defence was trading 0.77% higher at 9:50 am with Paras Defence, DCX India, Astra Micro, Garden Reach Shipbuilders & Engineers Limited, Zen Technologies among the top gainers. Additionally, Hindustan Aeronautics Limited, Bharat Dynamics, Mazagon Dock Shipbuilders Limited, and Cochin Shipyard were trading higher today.

Defence Stock Rally

Defence stocks are rallying over the past month as stocks like HAL, Paras Defence, DCX India, Garde Reach Shipbuilders & Engineers, Bharat Dynamics, etc have found renewed investors' interest. Tensions between India and Pakistan post Pahalgam terror attack, upbeat March quarterly results of the sector, were among the top reasons for defence sector stocks' growth, according to analysts.

However, the recent surge in defence stocks parallels the ongoing Israel-Iran conflict and the United States' action against the Islamic nation.

"The recent uptrend in Indian defence stocks can be viewed through the lens of both global geopolitical developments and domestic structural drivers. The escalating tensions between Israel and Iran have elevated global concerns around defence readiness, prompting a re-rating of companies operating in the aerospace and defence space. Historically, such geopolitical uncertainties tend to trigger increased investor interest in defence-related assets due to the potential for higher government spending and accelerated procurement cycles," said Prasanna Pathak, Managing Partner, The Wealth Company.

Pathak also highlighted that government's focus on 'Atmanirbhar Bharat' and defence production and export promotion policy (DPEPP) has significantly strengthened defence sector outlook.

"In this context, the recent rally appears to be a combination of sentiment-driven momentum and renewed confidence in the long-term structural growth of the Indian defence manufacturing ecosystem," Prasanna Pathak explained.

HAL Share Price Trend

HAL shares were trading 0.67% higher on BSE at Rs 5005.4 per share on BSE at 10 am with a market capitalisation of Rs 3,34,387.50 crore. The stock touched its 52-week high mark of Rs 5,675 per share on 9 July, 2024. The stock dipped to its 52-week low mark of Rs 3,045.95 per share on BSE on 3 March, 2025.

Paras Defence Share Price Trend

Paras Defence and Space Technologies shares were trading 3.45% higher at Rs 1711.5 per share on BSE at 10 am with a market capitalisation of Rs 6,896.26 crore. The stock touched its 52-week high mark of Rs 1,943.60 apiece on 19 May 2025, nearly a month after dipping to its 52-week-low mark of Rs 802 per share on 7 April, 2025.

Brokerage Nirmal Bang recently upgraded its stance on Paras Defence to 'Buy', indicating a target price of Rs 1877 per share. The brokerage has called the stock a 'consistently good performer' with a strong order book, revenue growth, and better profit.

Mazagon Dock Share Price Trend

Mazagon Dock shares were trading 1.73% higher at Rs 3314.95 per share on BSE on Monday at 10:15 am with a market capitalisation of Rs 1,33,718.45 crore. The stock touched an intraday high of Rs 3329.9 apiece. The company scrip touched its 52-week-high mark of Rs 3,778 apiece on BSE. The stock value has surged nearly 3.92% year to date (YTD).

Garden Reach Shipbuilders Engineers Limited

GRSE shares were trading 2.03% higher at Rs 3353.55 per share on BSE with a market capitalisation of Rs 38,415.59 crore. The stock value has surged by around 103.15% year to date (YTD). The stock touched its 52-week high mark of Rs 3,528 apiece on 5 June, 2025.

Given the promising rally of defence sector stocks, brokerage Emkaly Global, has mentioned Bharat Dynamics, Mazagon Dock, among its key ideas for long-term growth.

Disclaimer: The write-up is just for information purposes, and is not a recommendation to buy, sell or hold. We have not done fundamental or technical analysis and have no opinion on article mentioned. Neither, the author nor Greynium Information Technologies should be held liable for any losses. Please consult a professional advisor.