Before the presentation of the budget on February 1, there is a continuous decline in the stock market. In such a situation, investors are not able to understand whether to enter the market or should wait more. Even on January 13, when the market opened, the selling pressure was intact. At the end of trading, Sensex fell 1048 points and closed at the level of 76,330. In such a situation, will the market fall further before the budget? On this, market experts say that now there is very little possibility that there will be any major change in the trend of the stock market before the budget. Despite all these ups and downs, if you also want to bet in some defense stocks before the budget, then here we are telling you about 4 such stocks which will not disappoint you.
The first share is HAL. This company manufactures fighter planes and helicopters. Along with this, it also does the work of assembling and maintenance of fighter planes. This company has made many such fighter aircraft, which earlier were only imported. A great example of this is Tejas Light Combat Aircraft. Under the Make in India initiative of the Modi government, emphasis was laid on manufacturing defense equipment in the country and HAL has benefited from this. The order book of the company is quite strong. HAL stock has given 27 percent returns in the last one year. The effect of higher allocation for defense by the government in the budget can be seen on this stock. Investing now can yield good earnings in a few weeks.
The second company is BEL. This company manufactures electronic equipment for defense and aerospace sectors. Defense’s share in its total revenue is more than 80 percent. This BEL stock will get the direct benefit of increasing allocation for defense in the Union Budget of the government. The stock has given about 40 percent returns in the last one year. Market experts say that considering the company’s order book and strong fundamentals, its shares are expected to continue rising in 2025. If Finance Minister Nirmala Sitharaman announces the allotment for defense on February 1, this company will get the direct benefit.
Bharat Dynamics Limited
The third share is BDL i.e. Bharat Dynamics Limited. This company manufactures guided missiles and defense equipment for the army. This company has also benefited from the Government’s Make in India Initiative. The order book of this company was Rs 194 billion in FY24. The company is also increasing focus on exports. The increase in the government’s defense allocation in the Union Budget 2025 will have an impact on its stocks. The stock of this company has given about 27 percent return in the last one year.
Mazagon Dock Shipbuilders
The fourth stock worth investing in before the budget is MDL i.e. Mazagon Dock Shipbuilders. This company is one of the biggest shipbuilding companies. It manufactures many things including warships, submarines and offshore platforms. The share of defense related products in its revenue is about 98 percent. The company is also exploring opportunities in commercial ship repairing. In the last one year, this stock has given more than 80 percent returns. This company will also get the benefit of increasing allocation for defense in the government’s union budget. You now own 4 shares of defense sector. And before investing money in these shares, you must take advice from your financial advisor.