Latest news with #SankhanathBandyopadhyay
Time of India
5 days ago
- Business
- Time of India
Defence stocks rally up to 3% amid Iran-Israel tensions, investors eye sectoral boost, geopolitics fuel long-term export optimism
Defence and aerospace stocks saw renewed momentum in Tuesday's intraday trading session as intensifying geopolitical tensions in the Middle East and expectations of a higher defence allocation in the upcoming budget spurred investor interest. Leading the gains was Data Patterns (India) Ltd, which surged 3% to a day's high of Rs 3,049.50. Bharat Dynamics Ltd (BDL) followed closely with a 2.8% rise to Rs 1,940.70. BEML shares rose 2.2% to Rs 4,473.00, while Hindustan Aeronautics Ltd (HAL) climbed 1.6% to touch Rs 5,130.50, according to an ET report. The surge comes amid rising tensions between Iran and Israel, pushing investors toward sectors considered resilient during geopolitical crises. Market watchers believe the current situation may also accelerate government defence spending plans. Sankhanath Bandyopadhyay, Economist at Infomerics Valuation and Ratings, noted, 'Defence stocks look promising due to the ongoing geopolitical tussle between Iran and Israel. Moreover, the Indian government is likely to enhance defence spending from the current 2% of GDP to 3–4% over the next decade.' He added that the Centre's aim to achieve Rs 25,000 crore in defence exports by FY26 provides further support to stocks with export-oriented operations. The heightened global uncertainty has strengthened the outlook for companies catering to military and aerospace demand, analysts said. Cautioning investors, Bandyopadhyay said, 'In the current scenario, geopolitical tensions will likely be lingering between different countries, especially as being reflected in rising tensions in the Middle East. Investors should carefully assess the financials and outlook of such stocks before investing, and there should be a judicious mix so that a healthy dividend can also be earned.' The rally also reflects growing confidence in India's indigenous defence manufacturing sector, which has been prioritized under the government's Atmanirbhar Bharat initiative. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Time of India
5 days ago
- Business
- Time of India
Defence stocks jump up to 3% amid rising Iran-Israel tensions, defence budget boost hopes
Defence stocks rallied up to 3% on Tuesday, in intraday trade amid rising geopolitical tensions between Iran and Israel, coupled with the hopes of an increased defence budget by the government. The heightened global uncertainty appears to have renewed investor interest in India's defence and aerospace segment, with several key stocks touching fresh day highs. Among the gainers, Data Patterns (India) shares surged the most, rising 3% to hit a high of Rs 3,049.50. It was followed by Bharat Dynamics Ltd (BDL) shares, which climbed 2.8% to touch Rs 1,940.70. BEML shares also witnessed strong momentum, gaining 2.2% to reach Rs 4,473.00. Meanwhile, Hindustan Aeronautics Ltd (HAL) shares rose 1.6% intraday, hitting Rs 5,130.50. The rise in these stocks may be attributed to the war tensions in the Middle East between Iran and Israel, as investors see potential in the sector along with an expectation of enhanced defence spending by the Indian government. Commenting on the recent spike in defence counters, Sankhanath Bandyopadhyay, Economist at Infomerics Valuation and Ratings, also said, 'Defence stocks look promising due to the ongoing geopolitical tussle between Iran and Israel. Moreover, the Indian government is likely to enhance defence spending from the current 2% of GDP to 3–4% over the next decade.' He added that with the government targeting Rs 25,000 crore in defence exports by 2025–26, the outlook for export-driven defence stocks remains strong. Also read: Nifty Internet index outperforms peers with 19% returns since Feb launch. Is the dotcom boom here to stay? 'In the current scenario, geopolitical tensions will likely be lingering between different countries, especially as being reflected in rising tensions in the Middle East. Investors should carefully assess the financials and outlook of such stocks before investing, and there should be a judicious mix so that a healthy dividend can also be earned,' he advised.
