Perspective on the Defence sector by Dr. Vikas Gupta, CEO & Chief Investment Strategist at OmniScience Capital
Below the Perspective on the Defence sector by Dr. Vikas Gupta, CEO & Chief Investment Strategist at OmniScience Capital
“In the backdrop of a potential India-Pak war it is not surprising that the Defence stocks are rallying. In the case of a war, even if limited to 2-4 weeks, the demand for defence equipment, including arms, ammunition and weapons, could be substantial and result in significant orders to Defence companies.
As we have mentioned before, the military runs on many things beyond weapons, such as logisitics, food, clothing and basic supplies and all of these would also be need to be replenished and kept supply ready.
In the light of above it is not surprising that defence stocks are rallying. The need for a much heightened focus on defence for India, and potentially, to significantly increase the defence budget for the long term has been highlighted by the current situation.”
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