BEL, HAL, other defence stocks jump up to 5% after US raids Venezuela

Shares of defence companies surged on Monday, January 5, as rising geopolitical tensions between the US and Venezuela drove investor interest towards defence-related counters. The rally came after the United States launched a large-scale military operation in Venezuela, escalating tensions in the region and triggering a risk-on sentiment for defence manufacturing companies.

As of 10:50 AM on Monday, MTAR Technologies shares rose 4.21% to hit a day’s high of Rs 2,523 on the BSE. Paras Defence shares advanced 2.80% to touch Rs 713, while Hindustan Aeronautics Ltd (HAL) shares climbed 2.42% to Rs 4,544.9.

Further, the shares of Solar Industries surged 3.90% to a high of Rs 12,840, while those of Bharat Electronics Ltd (BEL) gained 3.19% to Rs 418.6, and Bharat Dynamics (BDL) rose 3.27% to Rs 1,553.

Data Patterns shares were up 3% to Rs 2,726. Defence index heavyweight Mazagon Dock shares also jumped to Rs 2,544, up 1.39%.

The buying interest in defence stocks was sparked by the United States' execution of “Operation Absolute Resolve,” a strategic offensive involving targeted airstrikes across Venezuela.

The US military captured Venezuelan President Nicolás Maduro and the First Lady during the operation. The move followed months of economic sanctions and diplomatic isolation.

In a statement following the operation, US President Donald Trump said, “We are going to run the country,” referring to Venezuela, and emphasised a transition under US oversight.

Trump added that the US would sell significant quantities of Venezuelan oil to other nations, citing past grievances of resource misappropriation. The statements suggested a long-term involvement in Venezuelan affairs, intensifying the perception of a protracted geopolitical crisis.

Market participants seem to have responded to the developments with increased exposure to defence-linked equities, reflecting expectations of elevated global defence spending amid sustained uncertainty.

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