Offensive Defence

Modi-Trump meet: Tie-up with foreign firms in defence will benefit HAL, BEL

HAL, BEL are likely to benefit only if the government promotes ‘Make in India’ and/or partnership with foreign firms and focuses more on reducing import dependency as India has the largest share of arms imports, Ajit Mishra, VP- Research at Religare Broking, tells Moneycontrol’s Kshitij Anand.

Q. The Nifty50 saw a smart rally in the week gone by which pushed the index back above 12,100 levels in a single trading session. What is your outlook on markets – do you think, the momentum will continue as the risk stemming from coronavirus (COVID-19) seems to be receding? What are the important levels to track in the coming week?

A. While the number of confirmed cases receding is positive, the impact on economic growth would continue to be a key monitorable going forward.

With most of the key domestic events behind us, the near term market trend will be dictated by the global peers and developments particularly related to COVID-19.

On the benchmark front, the Nifty is currently hovering within 11,900-12,300 zone and either side decisive break would trigger the next directional move.

Q. Donald Trump’s visit to India which is scheduled next week is already fuelling some volatility in the Defense-related stocks. Media reports suggest that India and the US are expected to sign a $2.6 billion deal to buy 24 Seahawk helicopters from American defence manufacturer Lockheed Martin Corp. Will defence-related stocks will be back in focus?

A. The government’s increased focus on defence is a positive sign for stocks like HAL and Bharat Electronics. However, the mentioned stocks would benefit only if the government promotes ‘Make in India’ and/or partnership with foreign firms and focuses more on reducing its import dependency as India has the largest share of imports for arms.

Facebook Comments

Source
Moneycontrol
Tags
Show More

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button
Close
Close