India-Pakistan Conflict Jitters: Which Sectors Will Boom?

In the aftermath of the Pahalgam terrorist attack, in Kashmir, the Indian army carried out an offensive attack against 9 terrorist infrastructures in Pakistan and Pakistan-occupied Kashmir (PoK) on May 7, 2025, called Operation Sindoor.

Pakistani terrorists carrying out the attack had differentiated on the basis of faith while killing innocent Indian tourists. After conduction Operation Sindoor on May 7, two women officers - Wing Commander Vyomika Singh and Colonel Sofiya Quraishi took the lead and shared the details of the military's precision strikes against Pakistan.

After this operation, the Indian stock markets showed immediate effect as defence stocks rose. This escalation between India and Pakistan has triggered a notable reaction in the financial markets.

Which Sector Stocks Will Boom?

Defence and Aerospace Sector: As the Operation Sindoor is being executed using indigenous technologies and strategic air dominance, India's defence manufacturing ecosystem is playing a pivotal role in the process.

Stocks of the defence and aerospace sector that may get affected due to this are Bharat Electronics Limited (BEL), Hindustan Aeronautics Limited (HAL), Bharat Dynamics Limited (BDL), Paras Defence and Space Technologies and Bharat Forge Limited.

Cybersecurity and IT Sector: An extended part of the conflict that is being fought on the borders can also affect the Indian cyberspace. Cyber defence, intelligence surveillance, and digital infrastructure protection, therefore become important as they benefit Indian cybersecurity and IT firms.

Stocks in the sector that may get affected are Tech Mahindra, Quick Heal Technologies and L&T Technology Services.

Logistics Sector: Further, the logistics sector also requires rapid, secure as well as wide-ranging transport networks due to which firms that have national rail, road, and air freight capabilities become essential to operations.

Additionally, since the direct trade and shipping routes between India and Pakistan have been suspended, cargo needs to be rerouted through transhipment hubs which leads to increased demand for logistics services.

The stocks that need to be watched in this sector are Container Corporation of India (CONCOR), Blue Dart Express, TCI Express and Allcargo Logistics.

Oil & Energy Sector: Typically, during times of geopolitical instability, especially in South Asia. Therefore, the Indian oil stocks may experience windfall gains as well as volatility.

The stocks to watch in this sector are Oil and Natural Gas Corporation (ONGC), Oil India Limited, Indian Oil Corporation (IOC), NTPC and Power Grid Corporation of India.

Also Read: India Declines Vote On IMF's $2.3 Billion Loan To Pakistan As It Is 'Too Big' A Debtor