Indian defence stocks rallied on June 23 morning after the United States formally entered the conflict against Iran by joining Israel in airstrikes on Iranian nuclear facilities. The move comes amid heightened fears of a broader Middle East conflict, with Iran vowing retaliation and threats of closure of the Strait of Hormuz.
Shares of Avantel surged 2.74% to ₹159.17, Paras Defence & Space Technologies rose 2.64% to ₹1,697.90, while Premier Explosives climbed 2.35% to ₹606.75 on the NSE. Other gainers included Data Patterns (up 1.63%), Bharat Electronics (up 1.71%), and C2C Advanced Systems (up 2%).
The uptick follows US President Donald Trump’s confirmation that US forces, in coordination with Israeli operations, had “completely and fully obliterated” key Iranian nuclear sites in Fordo, Isfahan, and Natanz. Trump warned Tehran of further consequences should Iran retaliate.
Iran’s Supreme Leader Ayatollah Khamenei’s aide has urged a counter-attack on US forces and demanded closure of the Strait of Hormuz to Western powers. The Atomic Energy Organisation of Iran confirmed the strikes but stated their nuclear operations will continue.
Market analysts believe the situation could lead to increased defence spending and demand for Indian defence exports amid global supply uncertainty.
