Will The Influence Of Defence Reserves Continue After The Budget? I Got Up To 90% Return In A Month

There may be glory in the defense sector

The full budget for the financial year 2024-25 will be presented on July 23, 2024. This time, Finance Minister Nirmala Sitharaman’s budget is expected to provide a big relief to the common man. At the same time, the Finance Minister’s budget speech can also give a lot of clues to the stock market. In such a situation, it remains to be seen whether there will be a rally in defence sector stocks.

If we look at the defence sector stocks, there has been a huge surge in the last month. Some of these stocks have increased by as much as 90 per cent. One of the reasons for this is the government’s promotion of indigenisation of the defence sector.

Defense stocks returned as much as 90%

Shares of GRSE, a government-owned defence company that manufactures warships, have returned 90% in the last month. While Mazgaon Dock stock has returned 73%. Similarly, Paras Defence has returned 63%, Cochin Shipyard 49% and Bharat Earth Movers Limited 28% in the last month.

Investors earned over Rs 1 lakh crore

If we look at the returns of the country’s top 10 defence companies in the last one month, their total market capitalisation has increased by over Rs 1 lakh crore. This means that the total wealth of all investors in these stocks has increased by a lot.

Government’s emphasis on a “self-reliant India”

To take advantage of the global conditions that arose during the Covid period, the Indian government had started to emphasize on a “self-reliant India”. Thanks to this, the order book of domestic defense companies has been strengthened. From Hindustan Aeronautics to Cochin Shipyard, they have so many orders that it will take a long time to complete them. This time in the budget too, the government will focus on “self-reliant India”, because job creation remains a big challenge at the moment. At the same time, the government has already prepared outline plans for defense corridors in different parts of the country, on which rapid progress is now expected.