Defense stocks: The shares of defense companies saw a strong boom on 19 January today. This fast is considering improving policies to promote FDI (FDI) in the government defense sector after this news. Defense Secretary Rajesh Kumar Singh recently said during an event that India’s defense industry is standing at the mouth of great expansion. He said that the FDI policy will speed up the speed of the Indian defense industry.
He also said that the Public-Private Partnership (PPP) will play an important role in making the country an advanced manufacturing hub. The Defense Secretary said that the Defense Budget was Rs 6.21 lakh crore in the current financial year, which will increase by 9.5% to ₹ 6.81 lakh crore in the next financial year 2026.
Meanwhile, after the recent decline in defense shares, investors today adopted the “Buy The Dip” strategy, which led to a strong bounce in the sector.
The share of Majgaon dock shipbuilders rose 11 percent to a highest level of Rs 2,177.50 during trading, which is recovering after three consecutive days fall. Bharat Dynamics Limited also saw strong purchases, which was trading 9.25 percent to Rs 1,103.30 per share.
Hindustan Aeronautics Limited (HAL) shares rose by 2.61 percent to Rs 3,431.90 per share, while Paras Defense and Space Technologies shares rose 7.43 percent to Rs 908 per share. Cochin Shipyard shares rose 9.3 percent to Rs 1,349.9 per share in intraday.
Shares of Gen Technologies also rose today and it rose 10 percent to Rs 1,069.20. Earlier, it had declined by 31 percent in the last 2 days.
Earlier in December, Elara Securities increased the rating of several defense shares. These include HAL, BDL, Bharat Electronics (BEL) and Garden Reach Shipbuilders (GRSE).
In recent years, investors were seen to have a lot of interest in defense shares. Defense manufacturing is being promoted in the country under the government’s “self -sufficient India” policy. Also, this sector is getting strengthened by the increase in FDI and focus on defense exports. Due to this, many defense stocks have given multibagger returns in the last few years. Some shares increased by 400%. However, recently, due to profits, these shares saw a sharp decline.
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