Defence stocks surge; Bharat Dynamics jumps nearly 6 pc

New Delhi, Mar 6 (PTI) Defence-linked stocks rallied on Friday, with Bharat Dynamics surging nearly 6 per cent, as rising geopolitical tensions in West Asia increased investors' interest in them.

Shares of Bharat Dynamics surged 5.78 per cent, Garden Reach Shipbuilders rallied 5.09 per cent, Mazagon Dock Shipbuilders soared 5 per cent, Paras Defence and Space Technologies jumped 4.28 per cent, Hindustan Aeronautics climbed 3.38 per cent, and Bharat Electronics went up by 1.82 per cent on the BSE.

On the sectoral front, the defence segment emerged as the top performer as rising geopolitical tensions increased investor interest in defence-linked stocks, Ponmudi R, CEO of Enrich Money, an online trading and wealth tech firm, said.

In the equity market, the 30-share BSE Sensex tumbled 1,097 points or 1.37 per cent to settle at 78,918.90.

The 50-share NSE Nifty dropped 315.45 points or 1.27 per cent to end at 24,450.45.

"Defence stocks remained in focus, extending their recent rally amid escalating geopolitical tensions in West Asia.

“The defence index rose 2.8 per cent in today's session after gaining 2.5 per cent in the previous session, as heightened global security concerns strengthened expectations of increased defence spending and improved order visibility for the sector," Siddhartha Khemka - Head of Research, Wealth Management, Motilal Oswal Financial Services Ltd, said.

The US and Israel launched military strikes on Iran on February 28, killing Ayatollah Ali Khamenei, Iran's supreme leader.

Following the military offensive, Iran has carried out a wave of attacks mainly targeting Israeli and American military bases in several Gulf countries, including the UAE, Bahrain, Kuwait, Jordan and Saudi Arabia. PTI SUM DRR