Shares of Garden Reach Shipbuilders are trading with gains of 6%, while those of Zen Technologies and Cochin Shipyard are trading with gains between 4% and 5%.
BEML, Bharat Dynamics, Data Patterns, Bharat Electronics are also some of the other gainers within the defence space, seeing a move higher of up to 3%.
Israel launched calculated strikes on Iran’s nuclear program earlier in the day leading to multiple casualties, and Iran vowing retaliation. Reports also indicate that Iran has launched up to 100 drones towards Israel.
Analysts that CNBC-TV18 spoke to mentioned that they do not expect a significant impact on defence imports unless the tensions continue for a longer period. Indian companies had faced supply chain issues in the past during the Israel-Palestine war, but most of those issues have been resolved.
Although India’s exports to Israel are not very significant, analysts believe that this could result in some export opportunities arise.
Between 2019-2023, up to 9% of India’s defence imports came from Israel. India imported arms, ammunition, parts and accessories worth $128.4 million from Israel in 2024, according to Trading Economics.
In an interaction with CNBC-TV18 on Friday, Manishi Raychaudhuri of Emmer Capital said that he has significant exposure to industrials, which includes defence stocks. However, he said that defence stocks are pricing in significant positives. He mentioned that one will have to be careful within the industrial space, given the current valuations.
