A week of heightened geopolitical tensions between two nuclear-armed neighbours India and Pakistan boosted shares of defence sector companies. Between February 21 to March 1, shares of Bharat Dynamics, Bharat Forge, Cochin Shipyard, and Hindustan Aeronautics along with others rallied in-trade on the back of the rising cross-border tensions.
The biggest gain was seen in Bharat Dynamics, which rallied over 15 percent to Rs 286.85 per share. Cochin Shipyard advanced over 6 percent to Rs 363.80 per share. Bharat Forge gained nearly 9 percent to Rs 517.05 per share, Gujarat Pipavav Port surged nearly 6 percent at Rs 85 per share along with Bharat Electronics, which rose about 9 percent at Rs 85 per share.
During the same period, the Nifty 50 Index lost over 1 percent.
Following a terrorist attack on a CRPF convoy in Pulwama in Jammu and Kashmir on February 14, the Indian Air Force carried out a strike on Jaish-e-Mohammed training camps in Balakot, Pakistan, on February 26.
In response, the Pakistan Air Force jets on the next day violated Indian air space and dropped bombs across the Line of Control, but were pushed back by the IAF planes. Pakistan shot two Indian jets and arrested an IAF pilot, who was released on March 1 by Pakistan after two-day captivity.
First Published: IST