Defence Stocks Soar Up to 9% Amid US-Iran Tensions: Is Conflict Driving the Rally?

• Defence stocks, including BEL, HAL, and BDL, rallied up to 9% on Friday, February 20, 2026, boosting the Nifty India Defence index by nearly 2%.
• The surge is attributed to escalating geopolitical tensions between the United States and Iran, leading to increased demand expectations for military spending.
• Data Patterns led the gains, jumping 9%, while Paras Defence, MTAR Technologies, Garden Reach Shipbuilders, and Bharat Dynamics rose about 4%.
• US military deployments and Iran's planned rocket launches have heightened geopolitical risk, prompting investors to seek defence stocks as a hedge.
• The rally also follows a correction after the Union Budget, making large-cap defence stocks like HAL and BEL more attractive due to robust modernization spending.