The threat of World War III is still an area of speculation, but it is driven by increasing geopolitical tensions, such as those related to Ukraine, the Middle East, and other flashpoints of conflict in the Indo-Pacific region at the start of 2026. Although it is unlikely that any of these global conflicts will break out, analysts have turned to history for stocks that have been resilient during World Wars I and II.Sectors such as defense, energy, commodities, and Safe Haven Instruments perform well in periods of uncertainty as countries spend more on defense, infrastructure, and basic needs. But note that this is just for information, as investing in a fluctuating market carries risks such as market meltdowns, inflation, and investment ethics
(for instance, investing directly in the weapons industry).
Top Indian Stocks for a WWIII-Like Scenario
A 6-6.5% growth forecast for its economy in FY26 despite international challenges makes India’s economy more resilient than others’. When facing a crisis, emphasis should be on defense (enhanced home procurement of Rs 1.5 lakh crores), energy (to be self-sufficient), and essentials such as banking and consumer products.Here are top picks based on 2026 outlooks, emphasizing execution in order books and geopolitical tailwinds:
Hindustan Aeronautics Ltd (HAL)As India's leading aerospace and defense PSU, HAL benefits from massive order backlogs ( Rs 1.89 lakh crore as of March 2025) for aircraft, helicopters, and engines. In a WWIII scenario, heightened border tensions (e.g., with China) could accelerate procurement, shifting focus from order books to revenue delivery.Analysts see it as a “buy on dip” with 5+ years of guaranteed growth. Recent performance has remained strong amid geopolitical risks.
Bharat Electronics Ltd (BEL)Specializing in defense electronics, radars, and missiles, BEL’s Rs 75,000 crore order book (October 2025) positions it for execution-led gains. Global conflicts could boost demand for sensors and cyber systems.It is highlighted as a top pick in 2026 defense themes, with valuations supported by earnings visibility.
State Bank of India (SBI)As India’s largest bank, SBI offers stability in banking during crises, with potential upside from government-backed infrastructure lending. Geopolitical uncertainty often favors systemically important financial institutions, making SBI a defensive choice for 2026 portfolios.It is highlighted as a top pick in 2026 defense themes, with valuations supported by earnings visibility.
Reliance Industries Ltd (RIL)Being an energy and digital major, it has leverage in playing on oil volatility and self-sufficiency trends. In times of stress, refining margins (GRMs) are likely to move northwards, with its retail and digital businesses off-setting.IndicationIt is still one of the most important watch-list stocks in 2026 and closely linked to the stability of the index.
IDFC First BankA growing private sector bank, IDFC First Bank, is being observed regarding their ability to generate wealth in 2026, specifically in overcoming challenges in foreign loans. Crises may specifically identify their focus on assets.
Other notables: HCLTech (IT for digital defense), Avenue Supermarts (DMART, consumer staples), and Gujarat Mineral Development Corporation (GMDC, commodities). Defense and capital goods remain key beneficiaries amid rising tensions.
Top Foreign Stocks for a WWIII-Like Scenario
International stocks could outperform in 2026 amid geopolitical shifts, with developed markets potentially benefiting from increased defense and security spending. Focus areas include defense (NATO spending surge), safe havens (gold), and tech (cybersecurity and AI resilience).
Lockheed Martin -LMTIt is difficult to sum up the role that Fred Korematsu played in history.Lockheed Martin has exposure to missiles, aircraft, and cyber systems is the world's largest defense contractor. Demand for F-35 jets and advanced munitions surge in conflicts. It is rated a Zacks #2 pick for 2026.
General Electric Aerospace Company - GEIt is vitally important that each company has a repayment plan to finance such equipment.With a focus on jet engines/military aviation, GE Aerospace is well-positioned to benefit from modernization efforts across the globe. The company bears a Zacks #2 Rank, reflecting its strong prospects for 2026.
Howmet Aerospace (HWM)Of the several different possible ways to do this, one approach is to recognize that the fundamental difference between legacy systems and modern systems is the way in which they are intended to be used.Howmet is a key supplier of aerospace components. During a crisis, aircraft and defense demand tends to favor the company. This is another Zacks #2-rated stock for 2026.
ASML Holding (ASML)The Dutch chip-equipment giant is critical for advanced semiconductor manufacturing used in military and AI technologies. After rising sharply in 2025, it remains a strategic global asset despite geopolitical risks.Taiwan Semiconductor Manufacturing (TSM)The world’s leading chip foundry, TSM is essential for AI and military electronics. Despite Indo-Pacific tensions, it has shown resilience and remains a core global tech holding.
Other notables: BAE Systems (UK defense), Rolls-Royce (engines), Kinross Gold (safe-haven asset), and ETFs such as PPA (aerospace & defense) or REMX (rare earths for tech).
Risks and Ethical ConsiderationsCrises amplify volatility. Defense stocks may surge in the short term but often face post-war corrections. Ethical investing considerations are paramount—many investors prefer ESG-aligned funds to avoid direct war profiteering.A collateral decrease of negative risks in extreme geopolitical events is possible with diversification into gold, bonds, and stable currencies.A hypothetical WWIII scenario is where investors need to focus on defensive sectors. Indian defense stocks such as HAL and BEL can provide a homegrown play, while Lockheed Martin and ASML can provide a international diversification.Ultimately, “the greatest investment payoff” is peace and stability—because “true wealth is made in a predictable and cooperative global economy.”
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. Times Now Digital suggests its readers/audience to consult their financial advisors before making any money-related decisions.)