Defence company shares in India went up on June 17, 2025, as the war between Israel and Iran continued for the fifth day. Investors believe this conflict could lead to more orders for Indian defence companies, causing their stock prices to rise sharply.
Shares of companies like Mazagon Dock, Bharat Dynamics (BDL), and others saw gains of up to 5%. As a result, the Nifty Defence Index went up by more than 1.3%, reaching around 8,982.
This is not the first time defence stocks have gained attention. Last month, after India carried out Operation Sindoor—a strike on terrorist camps in Pakistan—defence stocks had also rallied. Even as tensions with Pakistan cooled down, the ongoing war between Russia and Ukraine has kept interest in defence stocks high.
Now, with new fighting between Israel and Iran, investors expect even more global defence spending, which may benefit Indian companies.
However, experts are giving mixed advice. Ajit Mishra, an expert at Religare Broking, said that defence stocks have been going up and down a lot. He said that while there is good long-term growth potential, prices have gone up quickly, and this could lead to short-term risks.
He advised investors to be careful and choose companies with:
- A strong order book (many projects in hand)
- Good financial condition
- Ability to deliver on time
Even with ups and downs, experts believe that India’s defence sector has a bright future. Since India spends only 1.9% of its GDP on defence, there is room to grow. In today’s uncertain world, Indian defence companies are likely to play a bigger role.
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