Best Stocks to Buy During War: Iran–US Tensions & Market Impact

The geopolitical conditions are getting worse with every passing day. The escalation between the US, Israel, and Iran is negatively impacting the stock markets across the world. There are certain sectors and stocks that can perform well during such market conditions. 

In today’s blog post, we will give you an overview of the best stocks to buy in a wartime situation between Iran and the US.

Best Stocks to Buy in Wartime as Iran-US clash intensifies

S. No.	Company	Current Market Price (INR)	Market Capitalisation (in INR crore)	52-Week High	52-Week Low
1.	Hindustan Aeronautics Limited	3,799	2,54,128	5166	3,479
2.	Bharat Electronics Limited	428	3,12,639	473	277
3.	Paras Defence and Space Technologies Limited	642	5,168	972	458
4.	Bharat Forge Limited	1,668	79,674	1936	941
5.	Reliance Industries Limited	1,305	17,65,446	1,612	1,163
6.	ONGC Limited	287	3,60,807	293	219
7.	Vedanta Limited	714	2,79,045	770	368
8.	Tata Steel Limited	198	2,47,236	216	125
9.	Infosys Limited	1,340	5,43,531	1,728	1,215
10.	Sunpharma Limited	1,722	4,13,383	1851	1547

Defence and Aerospace: The government is increasing the defence budget to increase its weapons, military capabilities and to modernise them. These companies will benefit from increased defence procurement and strong government orders. The stocks which directly benefit from it are as follows:

1. Hindustan Aeronautics Limited

This is one of India’s largest aerospace and defence companies. The company is engaged in manufacturing fighter jets, helicopters, and aircraft components.

2. Bharat Electronics Limited

The company manufactures various radar systems, missiles, and related electronics and communication systems for the military. The company is receiving a large defence order.

3. Paras Defence and Space Technologies Limited

Paras Defence works in defence electronic equipment, optics, and space technologies. They supply specialised defence equipment.

4. Bharat Forge Limited

This is a leading engineering company engaged in the manufacturing of artillery systems. The company is actively participating in advanced artillery and weapon systems.

Oil Sector: As the war is going on in the region which supplies crude and refined oil to the entire world. And this war-like situation can disrupt the supply chain, causing the oil prices to increase across the country.

5. Reliance Industries Limited

Energy companies such as Reliance Industries Limited will be the direct beneficiary of this crude oil price rise. It has the largest refining capacity with global energy operations.

6. Oil and Natural Gas Corporation Limited

Oil and Natural Gas Corporation Limited is a company which is among India’s largest crude oil exploration companies. Due to higher prices, the profits of this company will increase.

Metal Sector: Due to a war-like situation, the industrial metals and raw materials can see increased demand during the global uncertainties. This can be beneficial for companies engaged in the metal and commodities sector.

7. Vedanta Limited

Vedanta is a global mining company and is engaged in producing zinc, aluminium, iron ore, and oil. As the company has strong exposure in the metal industry, it will benefit from the commodity price rise due to global uncertainties.

8. Tata Steel Limited

The steel demand has increased, especially during the war situation, because of increasing economies due to infrastructure, manufacturing, and defence production. The company has global operations and will directly benefit from them.

IT Sector: Due to a weaker rupee because of geopolitical tension, the Indian IT companies will benefit from it. As the major revenue of these companies comes in dollars.

9. Infosys Limited

Infosys is one of the largest IT companies in India. The company’s major source of revenue comes from exports, as the company has a global client base. Weaker rupee and increasing global digital demand will help the company in increasing its revenue and profit.

Pharma Sector: The pharma and healthcare industry is considered a defensive sector; the demand for pharma products will be stable during the economic downturn and war situations.

Sun Pharma Limited:

In the Indian pharma sector, Sun Pharma Limited is a prominent player. The company has a global presence and is specialised in the manufacturing of speciality drugs. The company has a consistent revenue source and sells its products across the world. 

Read Also: Iran–Israel War Impact on Indian Stock Market

Approach to Invest During a War-Time Situation

Investment during wartime requires a strategic and balanced approach as the market will be highly volatile. Panic selling is not suggested for a long-term investor. However, instead of this, one should focus on diversifying their portfolio across different sectors and asset classes. Short-term speculation should be avoided and focus on strong fundamental companies which have lower debt levels, consistent earnings and profits.

Conclusion

On a concluding note, as the economic tension is rising between the US, Israel and Iran, the equity market is highly volatile. Traders are in panic, exiting their positions in order to avoid any loss due to volatility. However, on the other hand, long-term investors are looking for opportunities in this market and are opting for a balanced approach to investing. There are various sectors which will benefit from this war-like situation, such as energy, defence, metal, oil, pharma, etc. But it is advisable to consult your investment advisor before making any investment decision.

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