Time for careful planning, not panic buying on defence stocks: Experts

Mumbai, May 7 In the midst of rising market volatility sparked by geopolitical tensions, experts on Wednesday urged investors to remain calm and take a calculated approach, especially while buying defence stocks.

Indian defence stocks traded flat amid heightened tensions with Pakistan after India successfully carried out 'Operation Sindoor'.

Analysts suggested investors to adopt a wait-and-watch approach due to geopolitical risks.

"This is a time for careful planning rather than rushed decisions or panic buying," said Dr Vikas Gupta, CEO and Chief Investment Strategist at OmniScience Capital.

Long-term investment opportunities continue to exist, especially in the defence sector.

He advised investors to avoid falling into fear or FOMO (fear of missing out) and, instead, maintain a watchlist of sectors and stocks that show strong long-term promise.

The key, according to Gupta, is to allocate capital gradually and rationally, rather than reacting emotionally to market noise.

However, Gupta emphasised that the defence sector stands out as a key area of focus.

“Defence companies, already holding strong order books, are likely to see further growth in orders due to Operation Sindoor,” he added.

“The attention now shifts to the pace of project execution, which could become more aggressive,” he stated.

According to market experts, defence stocks have already witnessed a significant run-up in recent sessions, particularly following the Pahalgam terror attack.

Gupta suggests that the results of this push may start reflecting in financials over the next few quarters to a couple of years, potentially driving revenue and profit growth.

Beyond conventional arms and ammunition, other critical defence-related areas are poised for growth, including cyber security, strategic minerals, rare earths, oil and gas, military EPC and defence logistics.

Meanwhile, shares of Bharat Dynamics, Hindustan Aeronautics, Bharat Electronics, and BEML remained largely unchanged.

Shipbuilding stocks such as Mazagon Dock Shipbuilders, Garden Reach Shipbuilders, and Cochin Shipyard also reflected a similar flat trend.

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