Defence-related stocks may remain in focus after India launched a strong counter-terror operation named Operation Sindoor. The Indian Air Force (IAF) carried out precise strikes on nine terror camps across the Line of Control (LoC) early Wednesday. These actions were taken as a pre-emptive step following rising border tensions and recent terror attacks.
The targeted camps reportedly belonged to banned groups like Jaish-e-Mohammed, Lashkar-e-Taiba, and Hizbul Mujahideen. Locations hit included Markaz Subhan Allah in Bahawalpur, Sarjal in Tehra Kalan, Markaz Abbas in Kotli, and Syedna Bilal camp in Muzaffarabad. These strikes came after 11 days of continuous ceasefire violations and the recent April 22 Pahalgam terror attack, which claimed 26 lives.
After the news, the defense manufacturing stocks are likely to attract renewed investor focus. Bharat Dynamics (BDL), Hindustan Aeronautics (HAL), Bharat Electronics (BEL), and Mazagon Dock Shipbuilders shares may rise as the market expects increased government defence spending.
On Tuesday, most of these defence stocks fell due to weakness in the broad market. BDL fell by more than 2 percent after rising to a 4.6 percent intraday gain. HAL and Mazagon Dock fell by about 2 to 4 percent, while Paras Defence and Space Technologies fell by almost 2 percent as well. The Nifty Defence index ended lower by more than 2 percent.
Nevertheless, with the new geopolitical events, all these stocks may recover. Stocks like Zen Technologies and Data Patterns, which have been underperforming as well, may see buying in case defence sentiment is positive.
Traders and long-term investors will now await any government policy declaration or new defense orders to be placed which might support the sector further.
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Source: Moneycontrol.
News Desk
