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The Defence Stocks to Zoom


The shares of the defence show signs of raring to strive ahead, the equipment manufactures for the defence forces like BEML, Bharat Forge, Pipnav Defence, Bharat Electronics, Walchandnagar Industries, Ashok Leyland and Astra Microwave Products etc have responded too well close to even 60% since this quarter this response was in anticipation that there will be greater emphasis on the indigenous manufacturing of the defence equipments and liberal allocation in the defence sector in the coming budget session.
 As India meets 70% of its defence requirements through imports and this trend will be soon reversed and to the joy of the investors who are always on the lookout of such sectors which have just started moving and will be hitting the headlines in near future and these two drivers are sufficient to keep the defence shares buoyancy.


More over the defence budget allocation in India is in top ten in the world and India happens to be the topmost importer of the defence equipments and even the increase in the FDI limit from 26% to 49% has a lot to do with the sentiments soaring in this sector more over there is sudden boom in the area of defence space and the earnings of the companies involved in the manufacturing facilities of the defence sector will be rerated in the coming years. 

Since there are only few listed players in the defence related stocks and obviously such stocks have a scarcity premium and so they are a great buy at any entry levels whatsoever. The defence sector is bound to provide the much awaited significant opportunity to both the abroad players as well as the domestic players. In the coming decade there will be total modernization of the Indian defence forces with expected pumping of $250 billion in the defence sector long way to go!!!!!