Defense Stocks: Defense shares strengthened amidst Indo-Pak stress, Ideaforge shares jumped 14%
New Delhi:
Its impact on the stock market is also clearly visible on the stock market between India and Pakistan. On May 9, the stock market appeared under pressure, but the Defense Sector Stocks of Defense Sector saw strength. Investors are seen returning to this sector once again as it is expected that defense expenses can be increased by the government.
Hal, BEL, BDL shares strengthen
On May 9, shares of defense -related companies like Hindustan Aeronautics (HAL), Bharat Dynamics (BDL) and Bharat Electronics Limited (BEL) saw a growth of 1 to 3 per cent in shares. In the last one month, these stocks have increased by about 12%. Every time defense companies become a strong option for investors in such situations because they expect government contracts to come.
14% loud boom in Ideaaphorge’s shares
Shares of drone manufacturer Ideaforge Technology have also increased by up to 14%. However, the company has stated a loss of ₹ 26 crore in the March quarter, while in the same quarter last year there was a profit of ₹ 10 crore. The company’s revenue also declined by 80% and it fell from ₹ 102 crore to ₹ 20 crore. Nevertheless, in the current environment, the demand and active role of defense companies saw a boom in stocks.
Heavy firing on LoC, India thwarted attacks
On the morning of May 9, Pakistan again opened fire in LOC areas like Poonch, Rajouri, Uri and Kupwara. Earlier, India thwarted the drone and missile attacks conducted by Pakistan on the military locations of Jammu and Pathankot. India said that 15 such attacks were stopped in the northern and western parts of the country.
Trust in the defense sector still maintained
Due to the deteriorating conditions between India and Pakistan, there is a fluctuations in the stock market, but the trust of investors in the defense sector remains constant. Stocks like HAL, BEL, BDL and Ideaforge have become a favorite for investors due to hopes of government spending and increasing demand.
Also read- Do not shop in panic in defense shares, take decisions thoughtfully: Experts advice