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

Shares of defense companies rose on Monday, January 5, as investors’ interest in defense-related counters grew due to escalating geopolitical tensions between the US and Venezuela. The rally came after the United States launched a large-scale military operation in Venezuela, raising tensions in the region and triggering risk-on sentiment for defense manufacturing companies.

As of 10:50 am on Monday, shares of MTAR Technologies rose 4.21% to Rs. 2,523 touched a one-day high. Shares of Paras Defense rose 2.80% to Rs. 713 touched, while shares of Hindustan Aeronautics Limited (HAL) rose 2.42% to Rs. 4,544.9 was reached.

Additionally, shares of Solar Industries rose 3.90% to Rs. 12,840 touched a high, while shares of Bharat Electronics Limited (BEL) rose 3.19% to close at Rs. 418.6 and Bharat Dynamics (BDL) rose 3.27% to Rs. reached 1,553.

Data Pattern’s share rose 3% to Rs. was 2,726. Defense index heavyweight Mazagon Doc shares also rose 1.39% to Rs. reached 2,544.

Buying interest in defense stocks was fueled by the United States’ implementation of “Operation Absolute Resolve,” a strategic offensive involving targeted airstrikes across Venezuela.

The US military captured Venezuelan President Nicolas Maduro and the first lady during the operation. The move follows months of economic sanctions and diplomatic isolation.

In a statement after the operation, US President Donald Trump said, “We’re going to run the country,” in reference to Venezuela, and emphasized the transition under US supervision.

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

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Market participants appeared to have responded to the development with increased exposure to defense-linked equities, reflecting expectations of rising global defense spending amid continued uncertainty.

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