War-proof stocks: Do US-Iran missile attacks warrant portfolio changes? Stocks to track

With the US and Iran exchanging missiles and the Strait of Hormuz back in focus, investors are wondering whether the flare-up in West Asia tensions warrants changes to their stock portfolios. So far, the market has shown resilience, with crude oil prices capping gains after an initial surge as technical talks between the US and Iran continued, even after US President Donald Trump said the ceasefire was over and revoked the Iranian oil waiver.

Sunny Agrawal, Head of Fundamental Research at SBI Securities, said that in a globalised world, almost all sectors are impacted directly or indirectly by geopolitical disruptions. However, he said a few sectors are relatively insulated from the impact of war, particularly domestic-facing businesses focused on essentials such as defence, utilities, telecom, hospitals, diagnostics, FMCG-consumer staples and pharma.

“Top picks among war-proof stocks, considering the earnings growth outlook, are Bharti Airtel, BEL, Power Grid, Sun Pharma, Narayana Health and Marico,” he told Business Today.

To recall, the US-Iran war started on February 28, 2026. A ceasefire was announced on April 8, 2026 and an MoU on 14-point interim peace deal was signed between the two countries on June 17. But on July 8, upset by attacks on oil tankers in Strait of Hormuz, US initiated waves of strikes on Iran. As things stand, ship traffic has almost come to an halt. 

The NSE benchmark Nifty, which stood at 25,178.65 on February 27, fell to a low of 22,182.55 on April 2, before recovering to 24,085.70 level by June 17, the day the MOU was signed. Despite the US-Iran tensions, the index is holding up and last traded at 24,161.85 in Friday’s trade.

Santosh Meena, Head of Research at Swastika Investmart Ltd, said it is still too early to aggressively chase pure war-proof stocks. Crude oil prices have not reacted sharply enough yet, and a clearer signal of escalation would be Brent crude crossing $81 per barrel, he said.

Among war-proof stocks, Meena said defence companies may eventually benefit. He said that resilient themes such as healthcare and pharma, which are considered defensive plays, along with energy transition, data centres and electric vehicles, are likely to continue performing well irrespective of how the US-Iran situation evolves.

“My top picks in the current environment are Sun Pharma, Narayana Hrudayalaya, Adani Energy Solutions, Kirloskar Oil Engines, ABB, Thermax, Sona BLW and TVS Motor,” he said.

Data compiled from corporate database AceEquity suggests that even as the US-Iran announced ceasefire last month, defensive stocks from healthcare sector including Granules India Ltd, Acutaas Chemicals Ltd, Ipca Laboratories Ltd, Neuland Laboratories Ltd, Gland Pharma Ltd, Caplin Point Laboratories Ltd, Aurobindo Pharma Ltd and JB Chemicals & Pharmaceuticals Ltd led the list of BSE500 gainers with over 10 per cent returns. Glaxosmithkline Pharmaceuticals Ltd, Natco Pharma Ltd, Lupin Ltd and Torrent Pharmaceuticals Ltd also delivered double-digt returns. 

EV player Ather Energy Ltd jumped 23 per cent during the ceasefire period despite easing crude oil prices. Auto component makers, which are dependent on crude derivatives, such as Ceat Ltd, Gabriel India Ltd, Sona BLW Precision Forgings Ltd, Minda Corporation Ltd, Exide Industries Ltd, Motherson Sumi Wiring India Ltd, Bosch Ltd and UNO Minda Ltd delivered 5-12 per cent return during the ceasefire. 

Chemical stocks such as Godrej Industries Ltd, Jubilant Ingrevia Ltd, Paradeep Phosphates Ltd and Gujarat Fluorochemicals Ltd also delivered healthy gains. 

Every three of five BSE500 stocks had delivered negative returns between March and June, the hostility period. FMCG, auto, IT and banking stocks were at receiving end during the period.