Indian defence stocks, including Hindustan Aeronautics Limited (HAL), Bharat Dynamics Limited (BDL), Bharat Electronics Limited (BEL), Garden Reach Shipbuilders & Engineers (GRSE), Ideaforge, and Astra Microwave, surged between 3% and 8% amid escalating tensions in the Middle East following Israeli airstrikes on Iran. The conflict between Israel and Iran has raised hopes of increased defence order inflows. Despite the geopolitical tensions and a rise in oil prices, Indian equity benchmarks rallied on June 16, 2025. The Sensex jumped 738 points to 81,857, and the Nifty 50 climbed 245 points to 24,963, defying global market jitters. Market analysts noted that investors showed a measured reaction to the Israel-Iran conflict, pricing in a limited scope for the escalation. The Nifty index surged over 200 points to reclaim the 24,900 level, moving in tandem with global markets. Experts attributed the nearly 1% gains in Sensex and Nifty to investor confidence despite ongoing regional hostilities.