War Time Stock Strategy – 5 Indian and 5 US Stocks with Strong Fundamentals and Technical Edge Amid Gulf Tensions

War Time Stock Strategy – 5 Indian and 5 US Stocks with Strong Fundamentals and Technical Edge Amid Gulf Tensions

Explore 5 Indian and 5 US stocks with strong fundamentals and bullish technical setups that could benefit or stay resilient if the Gulf war intensifies

Introduction

As tensions brew in the Gulf region, especially amid fears of escalation between key players like Iran, Israel, and Western allies, global financial markets find themselves on edge. Such geopolitical unrest typically impacts oil prices, currency values, defense expenditure, and global trade flows. But not all stocks react negatively. Certain sectors and companies actually thrive or remain resilient during wartime.

This blog dives into 5 Indian and 5 US war-prone stocks — not because they are unsafe, but because they may actually gain from war-driven dynamics such as higher defense budgets, oil price volatility, cybersecurity risks, and logistics demands. We evaluate each stock on the basis of strong fundamentals and technical indicators, making them potential investment candidates during uncertain times.

Top 5 Indian Stocks to Watch in Case of War Escalation

1. Bharat Electronics Ltd (BEL)

Sector Defense Electronics

War Impact As a key supplier of radar systems, missile systems, and defense communication gear, BEL stands to benefit from increased defense orders.

Fundamentals

ROE: 21 percent

Debt-free company

3-year profit CAGR around 18 percent

Order book over ₹75,000 crore

Technical Indicators

Trading above both the 50-DMA and the 200-DMA

RSI near 58, indicating positive momentum

MACD in bullish crossover

Investor Takeaway: Stable fundamentals and government patronage make BEL a strategic long-term play.

2. Hindustan Aeronautics Ltd (HAL)

Sector Aerospace and Defense

War Impact Maker of indigenous fighter jets (Tejas), helicopters, and drones, HAL sees accelerated procurement during conflict.

Fundamentals

PE: 22x (reasonable considering growth)

ROCE: 26 percent

Dividend yield is around 1.2 percent

Order book: ₹80,000 crore

Technical Indicators

RSI around 62 (bullish territory)

Sustained breakout above the resistance zone

Price is comfortably above key moving averages

Investor Takeaway: HAL is a must-have in any defense-heavy portfolio during geopolitical tensions.

3. Reliance Industries Ltd (RIL)

Sector Oil, Energy, Telecom

War Impact Escalating Gulf war may spike crude oil prices, benefiting RIL’s refining margins and upstream operations.

Fundamentals

Revenue: ₹8.8 lakh crore

Net profit margin is around 8 percent

Diversified earnings from Jio, Retail, Oil, and Gas

Technical Indicators

RSI: 60+

Trading close to 52-week highs

Strong support around ₹2,600 levels

Investor Takeaway: As a proxy for energy, RIL could be a top beneficiary of rising oil prices.

4. Larsen & Toubro (L&T)

Sector Infrastructure and Defense Engineering

War Impact Builds warships and defense systems; also benefits from infra and logistics contracts in war-like economies.

Fundamentals

ROE around 15 percent

Order book ₹4 lakh crore

Strong balance sheet and global presence

Technical Indicators

MACD in bullish phase

RSI: 56–60

Trendline breakout above ₹3,750

Investor Takeaway: L&T provides exposure to both defense and war-led infrastructure spend.

5. Oil and Natural Gas Corporation (ONGC)

Sector Oil Exploration

War Impact: Crude prices soar during Gulf instability. ONGC benefits from higher realization.

Fundamentals

PE: 7.5x (undervalued)

Dividend yield: 6.4 percent

Net profit CAGR around 25 percent (3-year average)

Technical Indicators

Price crossing 200-DMA with volume support

RSI: 55–60

Trading in a bullish channel

Investor Takeaway: ONGC is a high-dividend energy stock for oil volatility hedging.

Top 5 US Stocks with War-Time Edge

1. Lockheed Martin Corp (LMT)

Sector Aerospace and Defense

War Impact Leading US defense contractor supplying missiles, jets, and radar to NATO allies. War increases demand.

Fundamentals

Net margin: 9.4 percent

ROE: 74 percent

Order backlog over $150 billion

Technical Indicators

RSI: 62 (bullish)

200-DMA support at $430

MACD positive crossover

Investor Takeaway: Lockheed thrives in wartime with long-term visibility and US DoD dependence.

2. Raytheon Technologies (RTX)

Sector Defense Systems and Cyber

War Impact Missile defense systems, avionics, and cybersecurity demand spike during conflict.

Fundamentals

PE around 18

ROCE: 12 percent

Annual defense revenue over $25 billion

Technical Indicators

Trading in a consolidation zone; likely breakout candidate

RSI: 54 (neutral to bullish)

50-DMA support at $92

Investor Takeaway: RTX balances physical defense and cyber warfare exposure.

3. Chevron Corporation (CVX)

Sector Oil and Gas

War Impact Gulf wars historically lift crude prices. Chevron benefits from global upstream operations.

Fundamentals

Dividend yield: 4.2 percent

Free cash flow: $25 billion annually

Debt-equity: 0.13 (low)

Technical Indicators

RSI: 60+

Holding above key SMAs

Volume spike in recent weeks

Investor Takeaway: A top pick for oil exposure if Middle East supplies are disrupted.

4. Northrop Grumman Corporation (NOC)

Sector Aerospace, Drones, Surveillance

War Impact Major role in stealth bombers, satellites, and drone warfare — critical in modern combat zones.

Fundamentals

EPS growth around 8 percent YoY

Debt-equity: 0.84

Backlog: $78 billion+

Technical Indicators

MACD positive

RSI: 58

Near breakout above $500 resistance

Investor Takeaway: Strong bet for tech-heavy warfare, including drones and ISR.

5. Palantir Technologies (PLTR)

Sector AI and Military Intelligence Software

War Impact Software is used by the US intelligence and NATO. Real-time analytics is critical in modern war scenarios.

Fundamentals

YoY revenue growth: 21 percent

Government contracts: $1 billion+ annually

Debt-free

Technical Indicators

RSI: 66 (bullish)

Strong uptrend with breakout above $25

MACD strongly positive

Investor Takeaway: Palantir is a modern warfare play for investors looking at AI-driven conflicts

Conclusion

While war is never a welcome development, strategic investors look for hedging opportunities and sectoral beneficiaries in times of global uncertainty. Defense, oil, cyber, intelligence, and logistics are war-resilient sectors that often outperform.

The 10 stocks listed above — 5 from India and 5 from the US — have strong business models, robust fundamentals, and bullish technical indicators. From BEL and HAL in India to Lockheed Martin and Palantir in the US, these companies offer more than just returns. They offer resilience in an unpredictable world.

Disclaimer

This content is for informational purposes only and does not constitute financial or investment advice. Please consult a qualified advisor before making any investment decisions.

Author’s Note

This blog has been curated and structured by an experienced financial content creator using advanced expert-level prompting techniques with AI assistance. It reflects a deep understanding of market behavior, geopolitical impacts, and fundamental as well as technical analysis. Every effort has been made to ensure that the content is accurate, insightful, and plagiarism-free, tailored specifically for readers seeking actionable insights during geopolitical uncertainties.