Monday was a day of great turmoil for investors in the Indian stock market. The heat of the deepening Iran-Israel war in the Middle East scorched Dalal Street also. The situation was such that BSE Sensex took a huge dive of more than 1000 points. But, the nature of the stock market is that amidst every major crisis, a path to profit opens somewhere. When the entire market was falling, the shares of defense sector gained rocket speed. A tremendous rise was seen in the shares of some companies.
Defense stocks boomed
Tension in the Middle East has reached its peak after the death of Iran’s supreme leader Ayatollah Ali Khamenei. This geopolitical instability has created uncertainty in markets around the world. This may be a time of panic for the common investor, but market experts saw this crisis from a different perspective. Whenever war erupts in any part of the world, the demand for defense equipment and weapons naturally increases. Experts believe that amidst this global tension, Indian defense companies can not only get new orders, but their export opportunities will also increase manifold. Due to this hope, investors started investing their money in the defense sector.
Paras Defense jumped by 13%
The investors of ‘Paras Defense and Space Technologies’ benefited the most in this entire incident. On Friday, this share closed at Rs 638.30. On Monday, it opened at Rs 610.05 under the pressure of weak global signals. But as the business progressed, investors started buying this stock heavily. During the day’s trading, this share reached a high of Rs 722.20 with a strong rise of 13.14 percent. However, there was some profit booking before the market closed and finally the stock closed at Rs 676.25 with a strong gain of 5.95%.
HAL and BEL also showed their strength
Not only Paras Defence, but government defense companies also openly challenged the falling market. Shares of Hindustan Aeronautics Limited (HAL) opened at Rs 3738.05 on Monday compared to Rs 3914 on Friday. In the day’s trading, it jumped by 1.75 percent to Rs 3982.60 and finally closed at Rs 3951.75 with a gain of about 1 percent.
Similarly, the share of Bharat Electronics Limited (BEL) fell from Rs 444.45 on Friday to Rs 442 on Monday. But due to increase in demand it jumped 2.78% to Rs 456.80. Finally this share closed strongly at Rs 453.75 with a rise of 2.09%. Apart from these, heavy buying was also seen in the shares of Bharat Dynamics Limited (BDL).
Disclaimer: This article is for information only and should not be considered as investment advice in any way. TV9 Bharatvarsha advises its readers and viewers to consult their financial advisors before taking any money related decisions.