New Delhi, April 7 -- It's well-known that certain sectors of the market respond strongly to geopolitical tensions. In 2003, the Iraq war sent defence and energy stocks soaring as investors anticipated increased military spending and volatile oil prices. Fast-forward to February 2026 and a similar pattern emerged, as pre‑conflict optimism drove inflows into the defence and oil & gas sectors. While the dynamics aren't identical, the market's responsiveness to geopolitical developments remains unchanged.

According to the NSE website, the Nifty India Defence Index experienced sharp swings over the past six months, rallying toward 8,300 points in November 2025 before correcting to around 7,214 by 30 March. Following the outbreak ...