Defence Stocks Today: Mazagon Dock, GRSE, BDL & Other Stocks Surges Above 5%- What's Fueling Rally

Israel-Iran War I Defence Stocks: Defence stocks in India witnessed a sharp surge in their share prices in trade on Tuesday, June 17 as the ongoing conflict between Israel and Iran entered its fifth day, heightening geopolitical tensions.

The Nifty India Defence Index climbed over 1.6 per cent during the session, crossing over the 9k mark.

Mazagon Dock Shipbuilders share price emerged as the top performer on the index, surging above 5 per cent. Garden Reach Shipbuilders & Engineers (GRSE) shares jumped over 4 per cent, while Data Patterns (India) shares advanced more than 3 per cent. Other major gainers included Bharat Dynamics, Cochin Shipyard, Solar Industries India, BEML, and Hindustan Aeronautics (HAL), which rose between 1 per cent and 2  per cent.

Meanwhile, shares of Zen Technologies, Mishra Dhatu Nigam, and Astra Microwave Products traded marginally lower unlike the trend at large. 

The renewed investor interest in defence stocks was driven by expectations of increased defence spending and order inflows amid rising global security concerns. The escalation of the Israel-Iran conflict has intensified market anticipation of higher demand for defence equipment and services.

Defence stocks had already gained traction last month following India’s targeted military strikes on terrorist outfits in Pakistan under Operation Sindoor. While tensions between India and Pakistan have since de-escalated, the prolonged Russia-Ukraine conflict continues to underpin bullish sentiment in the sector.

The latest developments in the Middle East have further strengthened the outlook for India’s defence stocks, with investors betting on sustained growth in defence orders and strategic investments.

The Defense sector’s market cap hit an all-time high in May 2025, recording a CAGR of 55 per cent between FY19 and May 2025, with aggregate PAT reporting a 23 per cent CAGR.

Defence companies performed well during the quarter ended March 2025 on the back of better execution amid push for 'Make In India' defence manufacturing. Further,escalation in geopolitical tensions in several fronts during the quarter prompted emergency procurement measures by the government — an initiative expected to translate into incremental orders for defence companies in the near term.