The shares of Bengaluru-based aerospace and defense electronics company Bharat Electronics Limited (BEL) soared on Monday as Indian defense stocks rallied in the wake of the geopolitical tensions in West Asia. Operation Epic Fury Over the weekend, the US and Israel launched a coordinated military strike against Iran. The Iranian state media said that the so-called “Operation Epic Fury” killed the country's Supreme Leader Ayatollah Ali Khamenei along with more than 200 people. In response, Iran fired missiles at Israel and Arab states. The Iran-backed militia Hezbollah also launched drone and rocket attacks on Israel, intensifying the conflict. Defense Stocks Rally Amid the tension, BEL’s price soared to a high of ₹,456.70, or an increase of 2.70% from the previous close of ₹,444.70. The stock price of other leading defense companies, namely Hindustan Aeronautics Limited, Tejas Networks, Paras Defense and Space Technologies and IdeaForge Technology are also up on Monday. Defense stocks tend to perform well during conflicts because of increased demand for military equipment and their components as countries increase their focus on defense preparedness. Meanwhile, the aviation industry is sustaining losses. The tension already led to airspace closures and caused mass flight cancellations. “While short-term volatility cannot be ruled out, defense stocks often act as relative outperformers during periods of geopolitical stress, whereas aviation remains sensitive to oil volatility and demand uncertainty,” said Harshal Dasani, business head of Mumbai-based investment company INVasset PMS, according to Livemint. India’s Defense Exports India is also set to benefit from rising geopolitical tensions as the US imports arms from the nation. According to South Asian Voices, India’s defense exports to the US exceeded $2.8 billion between 2019 and 2024. The number represents 50% of India's total defense exports during the period. Indian defense companies now also export defense products to 100 countries worldwide.
