Defence Stocks Rally as US Strikes Iran: Apollo Micro Systems, ideaForge Among Top Gainers
As global tensions rise following US missile strikes on Iran, Indian defence stocks are on fire. Shares of companies like Apollo Micro Systems, ideaForge, and Mazagon Dock surged today, with investors betting on more defence spending and stronger demand.
Let’s break down why this rally is happening and what it means for Indian markets.
📰 What Triggered the Rally?
Over the weekend, the United States launched missile strikes on Iran, targeting nuclear sites. This move has escalated the ongoing Israel-Iran conflict, shaking global markets.
While benchmark indices like Sensex and Nifty fell over 1%, one sector remained strong — defence.
Investors believe that with rising geopolitical tensions, countries (including India) will increase defence budgets and place more orders for military equipment. This is why Indian defence stocks saw strong buying.
📈 Top Gainers Today
Here are the defence stocks that performed strongly on Dalal Street today:
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Apollo Micro Systems: 🔼 up 8%
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ideaForge Technology: 🔼 up to 5%
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Swan Defence & Heavy Industries: 🔼 up to 5%
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Avantel, Paras Defence, Premier Explosives, Astra Microwave, DCX Systems, and others gained between 1.5% to 4.9%
🔁 The Bigger Picture: Defence Sector’s Comeback
The defence sector has been on a recovery path since March 2025, after five months of weak performance. Here’s why momentum is back:
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Operation Sindoor in March showcased India's indigenous defence strength.
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PM Narendra Modi re-emphasized the Make in India focus for defence.
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Strong Q4 earnings reports in the sector added to investor confidence.
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With the US now involved in the Israel-Iran war, the defence theme has become even stronger.
💹 What Analysts Are Saying
According to ICRA, India’s defence sector is expected to grow 15%–17% in FY26. The sector has a strong order book, with an order book-to-operating income (OB/OI) ratio of 4.4x at the end of FY25.
ICRA has given a positive outlook for defence companies, backed by:
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Government support
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Consistent budget allocations
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Policy reforms to boost local manufacturing
🧠 What Should Investors Do?
While the outlook is positive, experts advise caution. Defence stocks have risen sharply, and valuations are getting high. Investors should:
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Avoid panic buying
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Consult financial advisors
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Focus on long-term fundamentals
📝 Final Thoughts
The current rally in defence stocks is more than just a reaction to war — it reflects India’s push for self-reliant defence production, global demand for security, and strong earnings potential.
As the geopolitical landscape continues to shift, defence may remain a hot sector — but smart investing always beats emotional buying.
Reference from :-https://www.livemint.com/market/stock-market-news/israeliran-war-apollo-micro-systems-to-ideaforge-defence-stocks-extend-rally-as-us-attacks-iran-11750652740433.html