Indian stock market: BEL to HAL — Why defence stocks will be in focus on Monday?
Indian stock market: Following the Defense Acquisition Council’s (DAC) meeting held on Friday to disburse the ₹80,000 crore order, defence stocks in India are expected to remain in focus on Monday. According to stock market experts, defence companies with strong CAPEX are expected to come under the radar of Dalal Street bulls as some value buying is expected for to defence segment when the Indian stock market reopens on Monday. Speaking on the impact of the DAC meeting outcome on the Indian stock market, Amit Goel, Co-Founder and Chief Global Strategist at Pace 360 said, "The recent military order of 80,000 crores signifies a significant YoY increase in military spending.
This amount, constituting 13% of the military sector's budget for FY 24–25, aligns with the government's Long-Term Integrated Perspective Plan and Atmanirbharta campaign. On defence companies that may benefit from this DAC meeting outcome, Rajesh Sinha, Senior Research Analyst at Bonanza Portfolio said, “Defence PSUs like Bharat Electronics Ltd. (BEL), Hindustan Aeronautics Ltd.
(HAL), Bharat Dynamics Ltd. (BDL), etc. are expected to be the biggest beneficiaries of the project approval of ₹84,560 crore." Sinha went on to add that in December 2023, DAC gave initial approval to defence acquisition projects worth Rs.2.23 lakh crore that included the procurement of 97 Tejas light combat aircraft and 156 Prachand combat helicopters, in a major move to significantly enhance the combat capabilities of the armed forces.
Read more on livemint.com
