US President Donald Trump on Tuesday said that whatever is left of the Iranian leadership had agreed to engage in negotiations, but he said, “It’s too late.” He further claimed that Iran’s “air defense, Air Force, Navy, and leadership is gone.” Earlier, Trump said that he sees the conflict continuing for four to five weeks.
The conflict had escalated during the weekend after US and Israel conducted military strikes against Iran, killing its supreme leader Ayatollah Ali Khamenei. What followed were a series of retaliatory attacks from Iran on several regions in the oil-rich Middle East.
The latest round of hostilities comes days after Prime Minister Narendra Modi visited Israel in late February and said that India and Israel will pursue joint development, production and transfer of technology in defence.
According to a joint statement, India and Israel will develop and manufacture weapons jointly to strengthen defence cooperation, finalise a bilateral trade deal in the near term, expand cooperation under the UPI digital payments system, collaborate on space initiatives and emerging technologies, among other initiatives.
Indian defence companies to see sentiment boost
Indian defence names such as Hindustan Aeronautics Limited (HAL) and Bharat Electronics Limited (BEL) could see sentiment support from the rising conflict in the Middle East, even as elevated volatility persists amid a broader global risk-off mood in domestic equities, said brokerage firm JM Financial.
Defence stocks have seen significant volatility recently. After Indian armed forces carried out targeted operations against terrorist outfits in Pakistan and Pakistan-occupied Kashmir under ‘Operation Sindoor’, these defence stocks saw a massive rally. However, the momentum faded due to a lack of fresh triggers later.
HAL shares will additionally be in focus today after the Ministry of Defence signed a major contract with the PSU defence company for the supply of Advanced Light Helicopters to the Indian Coast Guard for Rs 2,901 crore.
The Nifty India Defence index closed in the green at 8,166.50 on Monday. Solar Industries and Paras Defence shares were the top gainers, rising more than 3% each.
While defence stocks may see a sharp uptick amid escalating tensions, the broader market is likely to remain under pressure. GIFT Nifty currently suggests a strong gap-down opening. At 8.30 am, GIFT Nifty was down more than 600 points to remain below the 24,400 level.
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