Shares of Indian defence companies rose sharply on Friday, with gains of up to 7 per cent on the BSE and NSE, after US President Donald Trump said on Thursday that a deal to end the war with Iran was nearly finalised and could be signed over the weekend, lifting sentiment across the sector.

Unimech, Data Patterns among top gainers

Among the stocks visible in intraday trade, Unimech Aerospace and Manufacturing surged 7.06 per cent to Rs 1,152.85, while Data Patterns (India) climbed 5.97 per cent to Rs 4,456.10. Apollo Micro Systems rose 4.05 per cent to Rs 397.20, 

Paras Defence and Space Technologies gained 4.26 per cent to Rs 1,031.25, and Avantel added 4.27 per cent to Rs 163.67. 

Astra Microwave Products was up 3.13 per cent at Rs 1,440, Zen Technologies rose 2.47 per cent, and Axiscades Technologies gained 2.50 per cent. Larger-cap names including Bharat Electronics (BEL), Hindustan Aeronautics (HAL), and Bharat Dynamics (BDL) also traded higher, though with more modest gains.

Trump signals deal, but Iran has not confirmed

Trump, speaking from the Oval Office on Thursday, said a deal to end the war with Iran was nearly complete and was expected to be signed over the weekend in Europe, with Vice President JD Vance likely to attend the signing ceremony. 

Trump announced on his Truth Social platform that he had cancelled scheduled strikes against Iran, saying discussions had been “brought to the highest level of Iranian leadership and approved.” 

However, Iran’s Foreign Ministry spokesperson Esmail Baghaei told state-run news agency IRNA that reports of a finalised agreement were “merely speculation” and that Tehran had not yet made a final decision on any deal. 

Markets have repeatedly reacted to Trump’s deal signals

Trump has signalled or stated outright more than 30 times that a deal is nearly at hand since the conflict began, according to a CNBC review of his social media posts and public remarks.

Despite the lack of follow-through, markets have continued to react to his repeated promises, with analysts at Deutsche Bank noting in a June research note that “there is some optimism that the US and Iran will reach a peace deal this month.” 

The rally in defence stocks follows a pattern seen through the West Asia conflict, where peace signals have triggered profit-booking in the sector. 

When Trump had previously announced a “complete and total” ceasefire between Israel and Iran in an earlier phase of the conflict, defence stocks including GRSE, MIDHANI, BEML, BDL, and Paras Defence fell up to 6 per cent on profit-taking.