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Stock Market Today: Defence stocks HAL, Mazagon Dock, Garden Reach Shipbuilders and others add 4-14% to their gains today amidst India-Pakistan conflict,. Analysts believe this rally is driven by expectation on  increased demand for military equipment and the potential for heightened defense spending in the region and globally.

The Garden Reach Shipbuilders share price was the largest gainer among the pack. The Garden Reach Shipbuilders share price rose to intraday highs of ₹2020 which translated into gains of more than 15% over previous days closing levels for the Garden Reach Shipbuilders share price

Mazagon Dock Shipbuilders share price was among other key gainers. The Mazagon Dock Shipbuilders share price gaine d almost 9% to scale 52 week or 1 year high of ₹3035. Mazagon Dock Shipbuilders share price that had seen 52 week lows of ₹1035 in May last year, now has given Multibagger returns to its investors

Hindustan Aeronautics or HAL share price adding to gains rose to intraday highs of ₹4660, which meant more than 15% gains for the Hindustan Aeronautics or HAL share price. The Hindustan Aeronautics share prices are rising on news flow pertaining to India signing deal to buy 26 more Rafale jets.

Bharat Dynamics share price while gained more than 4% during the intraday days, the gains by BEL or Bharat electronics share price closely followed .BEL or Bharat Electronics Share price gained slightly more than 4%

Dr. Vikas Gupta, CEO & Chief Investment Strategist at OmniScience Capital sharing his views on the ‘Defence sector, said that “In the backdrop of a potential India-Pak war it is not surprising that the Defence stocks are rallying. In the case of a war, even if limited to 2-4 weeks, the demand for defence equipment, including arms, ammunition and weapons, could be substantial and result in significant orders to Defence companies.

Also Gupta said that as we have mentioned before, the military runs on many things beyond weapons, such as logisitics, food, clothing and basic supplies and all of these would also be need to be replenished and kept supply ready.

In the light of above it is not surprising that defence stocks are rallying. The need for a much heightened focus on defence for India, and potentially, to significantly increase the defence budget for the long term has been highlighted by the current situation.

Prashanth Tapse, Research Analyst, Senior Vice President of Research at Mehta Equities attributed action iin the Defense sectors stocks due to the combination of two factors: ongoing. The first being INDO-PAK LOC tensions which could commit to enhancing domestic defense capabilities can lead to more orders or contracts for domestic firms. Further there are expectation of increase in global defense spending boosting investor confidence in the sector, added Tapse. it is believed that geopolitical tensions and Increased defense spending in US, Europe would rise export opportunities.

Disclaimer: This story is for educational purposes only. The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.

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