Defence stocks were trading higher on Monday morning, bucking the broader market weakness, as escalating geopolitical tensions in West Asia drove investors toward the sector. The Nifty India Defence index was up 0.69 per cent at 8,183.15 around 11:30 AM IST, after opening sharply lower at 7,936.05.

Among the top gainers, Paras Defence surged 11.56 per cent, while Solar Industries rose 4.08 per cent and Dynamatic Technologies gained 2.04 per cent. Bharat Electronics (BEL) was up 1.87 per cent, Bharat Dynamics (BDL) rose 0.60 per cent, and Hindustan Aeronautics (HAL) gained 0.53 per cent.

The gains come as crude oil spiked following fresh escalations in West Asia over the weekend, rattling broader markets, but triggering a rotation into defence names. Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Investments Ltd, flagged defence stocks as likely outperformers in a weak market environment, naming HAL, BDL, and BEL as stocks to watch.

The broader market context remains challenging. The Nifty 50 has broken below its 200-day moving average of 25,350, with technicians flagging a potential retest of 24,600. FIIs sold ₹4,600 crore in equities in the last sessions of the previous week, though DIIs cushioned the fall with purchases exceeding ₹24,000 crore.

Not all defence counters participated in the rally. Bharat Forge fell 2.02 per cent, Cochin Shipyard dropped 1.73 per cent, BEML declined 1.67 per cent, and GRSE slipped 1.26 per cent, indicating selective buying rather than a broad-based sectoral move.

The Nifty India Defence index has gained 59.46 per cent over the past year, though it remains off its 52-week high of 9,195.15. Markets will watch crude price movements and the trajectory of the West Asian conflict closely for further direction.

Published on March 2, 2026