Defence stocks in focus amid US–Iran tensions: BEL vs peers

With ongoing US–Iran hostilities and rising global uncertainty, the defence sector is drawing strong investor attention. Alongside geopolitical risks, India’s recent defence agreements with Europe and Israel are strengthening long-term growth prospects. Market watchers note that even as broader markets remain range-bound or weak, defence stocks could outperform in the near to medium term. Companies involved in drones, missiles, and aerospace systems are particularly well-positioned to benefit. India’s push to modernise its military—through major deals like Apache and Chinook helicopters and Rafale jets—along with a focus on domestic manufacturing and exports, is expected to drive sustained sector momentum. Given this backdrop,

is often seen as a comparatively stable pick versus other defence PSUs, thanks to its strong order book and electronics focus, though the overall sector outlook remains positive.