The trend of decline in stock markets continues before the Union Budget 2025. Selling pressure was seen on the market as soon as it opened on January 13. Due to this the major indices Sensex and Nifty fell significantly. Market experts say that now there is little hope of change in the markets before the presentation of the budget. The big announcement in the budget is expected to change the market sentiment. Sources say that the government will make a big increase in the allocation for the defense sector, which will have a direct impact on the defense stocks. Right now there seems to be investment opportunity in some defense stocks.
It manufactures fighter planes and helicopters. It also assembles and maintains fighter aircraft. This company has made many such fighter aircraft, which earlier had to be imported. Tejas Light Combat (LCA) aircraft is an example of this. This company has benefited from the emphasis of the Central Government of Prime Minister Narendra Modi on manufacturing defense equipment in the country. The order book of the company is quite strong. HAL stock has given 27 percent returns in the last one year. The effect of higher allocation for defense by the government in the budget can be seen on this stock. Investing now can yield good earnings in a few weeks.
This company manufactures electronic equipment for defense and aerospace sectors. Defense’s share in its total revenue is more than 80 percent. This BEL stock will get the direct benefit of increasing allocation for defense in the Union Budget of the government. The stock has given about 40 percent returns in the last one year. Market experts say that considering the company’s order book and strong fundamentals, its shares are expected to continue rising in 2025. This company will get the direct benefit of Finance Minister Nirmala Sitharaman’s allocation for defense on February 1.
Bharat Dynamics manufactures guided missiles and defense equipment for the army. This company has benefited from the government’s emphasis on manufacturing defense equipment in the country. The orderbook of this company was Rs 194 billion in FY24. The company is also increasing focus on exports. The increase in the government’s defense allocation in the Union Budget 2025 will have an impact on its stocks. The stock of this company has given about 27 percent return in the last one year.
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Mazagon Dock Shipbuilders (MDL) is one of the largest shipbuilding companies. It manufactures many things including warships, submarines and offshore platforms. The share of defense related products in its revenue is about 98 percent. The company is also exploring opportunities in commercial ship repairing. In the last one year, this stock has given more than 80 percent returns. This company will also get the benefit of increasing allocation for defense in the government’s union budget.