Drone, Defence Stocks: BDL, Paras Defence, Zen Tech, IdeaForge Shares Rally Up To 20 Per Cent As India-Pak Tensions Escalate

India-Pakistan Tensions: Defence stocks such as Bharat Dynamics, Paras Defence, and IdeaForge, among others, gained up to 20 per cent on May 9 as the tensions between India and Pakistan escalated further.

The Nifty India Defence index, which consists of 18 stocks of companies which cater to the Defence sector, surged as much as 3.7 per cent in early trade. Leading the index, Bharat Dynamics’ shares rallied up to 9.7 per cent to hit the day’s high at Rs 1,595 per share on the NSE. Following it, Paras Defence & Space Technologies’ shares rallied nearly 6 per cent to hit an intraday high (so far) of Rs 1,442.70 apiece. Zen Technologies’ shares followed, jumping 5 per cent to get locked in at the upper circuit, Rs 1,406.40 apiece.

Similarly, shares of Astra Microwave Products, DCX Systems, Bharat Electronics (BEL), Data Patterns, Hindustan Aeronautics (HAL), Mazagon Dock, MTAR Technologies, Garden Reach Shipbuilders & Engineers (GRSE) also traded in the green, gaining between 1 per cent to 3.5 per cent, at the time of filing.

The only losers from the index were Dynamatic Technologies and Cyient DLM, both slipping by less than 1 per cent in early trade.

IdeaForge Share Price: Drone Stocks Skyrocket

IdeaForge Technologies, which is not part of the Defence index, saw the sharpest surge. The defence stock rallied as much as 20 per cent during the day, hitting the upper circuit at Rs 463.5 per share on the NSE. IdeaForge manufactures Unmanned Aerial Vehicles (UAVs) or drones for various applications, including defense, security, mapping, and surveillance.

Shares of Droneacharya Aerial Innovations, also not part of the Defence index, jumped 5 per cent to the hit the upper circuit at Rs 68.13 on the BSE. Established in 2017, the company is in the business of drone operation training, drone supply and maintenance services.

Zen Technologies, mentioned above, is also involved drone technology. It designs, develops, and manufactures defense training systems and counter-drone solutions.

The rally in drone stocks comes as India and Pakistan have been involved in drone skirmishes over the past few days.

“Pakistan Armed Forces launched multiple attacks using drones and other munitions along the entire Western Border on the intervening night of 08 and 09 May 2025. Pak troops also resorted to numerous ceasefire fire violations (CFVs) along the Line of Control in Jammu and Kashmir,” the Army said in a post on X.

Investor Sentiment In Overall Market Remain Subdued

Meanwhile, the investor sentiment in the overall market remained subdued. Both the benchmark indices – Sensex and Nifty 50 – traded under pressure in early trade, slipping around 0.5 per cent to 1 per cent. Barring auto, PSU Banks, and consumer durables, all other sectoral indices traded with slight cuts.

Broader market indices also were in the negative territory. The Nifty Midcap 100 traded around 0.5 per cent lower, the Nifty Smallcap 100 traded with even steeper cuts, falling in the range 1 per cent to 1.5 per cent. The Nifty Microcap 250 too traded lower in the same range.

VK Vijayakumar, Chief Investment Strategist at Geojit Investments, highlighted that under normal circumstances, the market would have experienced significant losses on a day like this.

However, he believes this is unlikely for two main reasons. First, the ongoing conflict has shown India’s clear superiority in conventional warfare, and any further escalation is expected to cause major damage to Pakistan.

Second, the market’s inherent resilience is supported by both global and domestic factors. A weak dollar and the potential slowdown of the US and Chinese economies are favourable for India. Further, the domestic economic outlook remains strong, with high GDP growth expected this year and a declining interest rate environment.

These factors have led Foreign Institutional Investors (FIIs) to be active buyers in the Indian market over the last 16 trading sessions, he said. Vijayakumar advised investors not to panic or exit the market, but instead to remain invested, monitor the situation, and wait for the uncertainty to settle.