Defense Stocks Climb as India-Pakistan Tensions Rise; Paras Defence, Zen Technologies Rally Up to 6%

New Delhi, May 9 – Defense-related stocks surged Friday after fresh geopolitical tensions erupted along the India-Pakistan border. The gains came as investors bet on increased military spending and procurement amid escalating conflict.

According to official reports, the Indian military successfully neutralized multiple missile and drone attacks from Pakistan on Thursday night, targeting critical locations including Jammu, Pathankot, and Udhampur.

The Nifty Defence Index opened with strength, rising 1.28% in early trade. At 11:10 AM IST:

• Paras Defence jumped 6%,
• Zen Technologies hit its 5% upper circuit,
• Hindustan Aeronautics Limited (HAL) rose nearly 2%,
• Bharat Electronics Limited (BEL) gained 2.8%.

The bullish sentiment in defense counters follows renewed optimism around order flows and procurement announcements. However, it's worth noting that on May 8, the sector faced profit-booking, with the index ending the session nearly 1% down after intraday gains were erased.

Key Takeaways:

• Border tensions are fueling bullish sentiment in India's defense stocks.
• Investors are expecting increased defense budget allocations and faster procurement cycles.
• Analysts remain cautiously optimistic, given execution risks and macro uncertainties.

As geopolitical risks continue to unfold, defense counters could remain in focus for the foreseeable future, offering pockets of opportunity in an otherwise volatile market.