Quote on Indo-Pak War, Surging Defense Stocks from Dr. Manoranjan Sharma, Chief Economist, Infomerics Valuation and Ratings Ltd
Below The Quote on Indo-Pak War, Surging Defense Stocks from Dr. Manoranjan Sharma, Chief Economist, Infomerics Valuation and Ratings Ltd
“A rally in defence stocks is on. With India achieving all its avowed strategic objectives, Operation Sindoor was an unqualified and unequivocal success, a success in which India’s growing technological self-reliance played a pivotal role. The war unmistakably demonstrated the massive might of the Indian military powered by home-grown weapons and cutting-edge domestic technologies. Propelled by a distinct showcasing of India’s indigenous military strength and effective deployment of indigenous systems, India’s defence stocks, viz. Cochin Shipyard, Paras Defence, Mazagon Dock Shipbuilders, Bharat Dynamics, Bharat Electronics and Hindustan Aeronautics rose steeply up to 11 % post Operation Sindoor.
India’s defence sector has come of age, and how! This seamless integration of indigenous hi-tech systems into overall national defence across the development spectrum, e.g., drone warfare, layered air defence, electronic warfare, etc. was done in a telling manner- a manner that has been driven home effectively in the Indian sub-continent and internationally. And the rest is history.
Stock market forecast is always fraught with uncertainties because of a slew of global cues and domestic factors, performance of the firm, industry and the macroeconomy and future prospects. To my mind, the defence stocks are fairly valued because the capability and competence of the Indian defence products are clearly established and, therefore, defence stocks are set to move higher and onwards in “the new normal”- a normal, where patience cannot be mistaken for weakness, retribution and catastrophic revenge are inevitable in India’s new war doctrine at a date, time and place of India’s choosing.
India’s major defence stocks, viz. Cochin Shipyard, Paras Defence, Mazagon Dock Shipbuilders, Bharat Dynamics, Bharat Electronics and Hindustan Aeronautics are likely to do well. But the rise in these stocks will be a function of various factors. Hence, it’s difficult to quantify the rise in these scrips.”
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