By Admin 
Defense Shares Surge: These days, due to the tension arising in the Middle East between the war between Iran and Israel, there is a rise in the shares of defense sector. This shows that due to increasing geopolitical tension, investor interest in Indian defense stocks has increased. That is why the shares of Mazagon Dock Shipbuilders jumped by almost 9 percent on Friday, March 6.
This is the second consecutive day when the stock is witnessing a rise. In this week alone this PSU stock has gained about 15 percent. Mazagon Dock Shipbuilders started trading today at BSE at Rs 2398.95 and within no time it touched an intraday high of Rs 2559 and low of Rs 2373.55.
Mazgaon Dock shares rise
However, Mazagon Dock’s shares are not in the headlines only because of the war between Iran and Israel, but another reason for its rise is the contract worth Rs 99000 crore it got from the Indian Navy. Under this deal, the company has to build 6 modern submarines for the Indian Navy.
After this information given by the company, the interest of investors regarding it has increased in the market. Apart from this, after the recent news that an American submarine sank an Iranian warship with a torpedo attack, investor sentiment has strengthened and expectations of more spending on defense have increased worldwide.
Why are defense stocks rising?
In fact, in a war-like situation, governments all over the world increase their expenditure on military preparedness keeping their security in mind. This increases the chances of getting big orders for defense companies. Apart from this, amid geopolitical tension, export opportunities also open up for Indian defense companies because if the war drags on, the demand for weapons along with technology increases at the international level. This is the reason why investors consider defense stocks as a safe investment during a war-like situation when the stock market is falling. This is the reason why in recent times the shares of Paras Defense, BEL, Hindustan Aeronautics, Cochin Shipyard have risen.
Disclaimer: (The information provided here is being given for information only. It is important to mention here that investment in the market is subject to market risks. Always take expert advice before investing money as an investor. ABPLive.com never advises anyone to invest money here.)
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