India's defense stocks surge up to 6% amid Israel-Iran conflict
13 Jun 2025

The ongoing geopolitical tensions between Israel and Iran have sparked a rally in India's defense sector.

Shares of major defense companies such as Garden Reach Shipbuilders, Zen Technologies, Cochin Shipyard, BEML, Bharat Dynamics, Data Patterns, and Bharat Electronics have seen gains ranging from 3% to 6%.

The surge comes after Israel conducted targeted strikes on Iran's nuclear establishments earlier today.

Analysts do not expect major impact on defense imports
Market analysis

Analysts do not expect a major impact on defense imports unless the situation escalates.

This is because Indian companies had previously faced supply chain issues during the Israel-Palestine war, but most of those problems have been resolved.

Although India's exports to Israel are not very significant, some export opportunities may arise from this conflict.

Up to 9% of India's defense imports came from Israel
Import statistics

From 2019-2023, up to 9% of India's defense imports came from Israel.

In 2024, India imported arms, ammunition, parts and accessories worth $128.4 million from the country.

The Indian defense sector is not just reacting to the Middle East conflict but also benefiting from long-term growth drivers.

Companies like HAL, Bharat Electronics (BEL), and Mazagon Dock Shipbuilders are top picks in Antique Stock Broking's latest report.