India's defense, oil stocks surge after US raids in Venezuela
What's the story
Indian defense and oil stocks witnessed a surge on January 5, following the United States's military operation in Venezuela. The 'Absolute Resolve' mission involved airstrikes across the South American nation and the capture of its President Nicolas Maduro and his wife. The geopolitical development has led to a spike in shares of defense companies, pushing the Nifty India Defense index up by nearly 2% to 7,931.35 in today's session.
Strategic control
US President Trump's statement on Venezuela
US President Donald Trump has made it clear that he intends to take control of Venezuela. He said, "We are going to run the country," and stressed that he didn't want the Maduro system to continue under a replacement leader. Trump also hinted at an interim US-led handover, saying, "We are going to run the country until such time that we can do a safe, proper and judicious transition."
Market response
Defense stocks surge amid geopolitical tensions
The recent geopolitical development has led to a surge in defense stocks. Mtar Technologies shares jumped over 5% to trade at ₹2,497 apiece. Other companies like Paras Defense and Bharat Electronics (BEL) also saw their shares rise by nearly 3% each. BEL emerged as the top gainer on Indian benchmark indices Sensex and Nifty 50 while BEML, Astra Microwave Products, Hindustan Aeronautics (HAL), Bharat Dynamics (BDL), Data Patterns India and Solar Industries shares rose over 2% each.
Oil market impact
Oil-linked companies' shares rise amid US-Venezuela conflict
The US's military operation in Venezuela also impacted the Indian oil market. Shares of oil-linked companies rose today after the news broke. Oil & Natural Gas Corporation (ONGC) shares jumped by 2% to ₹246.8 apiece, becoming the top Nifty 50 gainer for the day. Reliance Industries (RIL) shares also rose over 1% to hit a fresh 52-week high of ₹1,611.8 apiece during early trading hours today.