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Defence stocks rise after ₹5,083 crore deals, US-Iran war; check Goldman top picksBrokerage firm Goldman Sachs expects order inflows to remain strong and sees medium-term tailwinds from a supportive budget allocation.By Meghna Sen  March 4, 2026, 9:23:55 AM IST (Updated)2 Min ReadShares of India's defence companies, such as Paras Defence and ideaForge Technology, are trading with gains of up to 7% on Wednesday, March 4, as the ongoing US-Iran conflict enters its fifth day.

The Ministry of Defence has signed contracts worth ₹5,083 crore for the procurement of Advanced Light Helicopters Mk-III in the Maritime Role configuration for the Indian Coast Guard and Surface-to-Air Vertical Launch Shtil missiles for the Indian Navy.

Of this, a ₹2,901 crore contract has been awarded to Hindustan Aeronautics, under the Buy Indian-Indigenously Designed Developed and Manufactured category.

The ALH Mk-III agreement includes mission-specific equipment, an engineering support package and performance-based logistics support. The induction is expected to strengthen the Coast Guard's capabilities in safeguarding artificial islands, offshore assets, fishermen and the marine environment.

Meanwhile, HAL was trading 2% lower after the contract for six ALH Mk-III helicopters was formalised on Tuesday evening under the indigenous procurement route.

Brokerage firm Goldman Sachs, in a note on the defence sector, said that the total orders signed by the ministry amount to about ₹5,080 crore.

While the ALH contract has been placed with HAL, the VL-Shtil missile order has been signed with Russia's JSC Rosoboronexport.

The brokerage expects order inflows to remain strong and sees medium-term tailwinds from a supportive budget allocation and a sharp rise in Acceptances of Necessity.

Goldman Sachs maintains a positive stance on the sector, retaining a 'Buy' rating on Solar Industries and PTC Industries. Among defence PSUs, it continues to prefer Bharat Electronics.

Globally, defence counters in South Korea rallied sharply on Tuesday. Hanwha Aerospace surged as much as 22%, while Korea Aerospace Industries gained over 7%. LIG Nex1 advanced 30%, and Victek and Firstec, which manufacture electronic warfare systems and anti-aircraft missile components respectively, climbed more than 20%. Poongsan rose 14%, while Hyundai Rotem added 18%.

The South Korean defence pack outperformed the broader KOSPI index, which fell over 2% on Tuesday, leading declines across Asia-Pacific markets. The country has set a target of becoming the world's fourth-largest defence industry by 2030.

Defence stocks typically respond positively during periods of geopolitical tension, as expectations of higher equipment demand and replenishment orders increase.

So far this year, the Nifty India Defence Index has gained 5%. MTAR Technologies has surged 57%, while Bharat Forge, Data Patterns and Bharat Electronics have risen 30%, 30% and 11%, respectively.Continue ReadingNote To ReadersDisclaimer: The views and investment tips expressed by investment experts on CNBCTV18.com are their own and not that of the website or its management. CNBCTV18.com advises users to check with certified experts before taking any investment decisions.First Published: Mar 4, 2026 8:17 AM ISTTagsdefence stocksUS-Iran