Brokerage house ICICI Securities says that domestic defense companies will benefit from the government’s Make in India theme. Some stocks will outperform in the coming days.
Best Defense Stocks to Buy: The central government has taken a big decision to promote Make in India in the defense sector. Recently, the Ministry of Defense (MoD) has released a list of 107 such products, the import of which has been banned. This list includes subsystems and components of major weapon systems and platforms. In December last year also, the government had banned the import of many such products. Brokerage house ICICI Securities says that this move of the government will benefit domestic defense companies. In the coming days, some stocks related to the defense sector may outperform.
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Bharat Electronics
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Boost to Make in India
The Parliamentary Standing Committee on Defense has recommended a 44 per cent increase in the Defense Capital budget. This will give a boost to Make in India. At the same time, according to the statement of the Defense Ministry, all these systems and components will be manufactured in the country itself. At the same time, after a time limit, they will be bought only from the domestic industry. The list includes equipment needed in the production of submarines, helicopters, tanks, missiles and communication systems.
Which company how many products
There are 22 such items in the list released by the Defense Ministry, which will be made in the country by the public sector company Hindustan Aeronautics (HAL). At the same time, 21 sub-systems will be manufactured in the country by Bharat Electronics (BEL). Mazagon Dock Shipbuilders (MDL) will indigenize six components used to build ships and submarines, while Bharat Dynamics (BDL) will indigenously manufacture four items for the Astra missiles. Whereas BEML will manufacture 12 such items. The brokerage house says that HAL and BEL remain in its top list. At the same time, the brokerage house has downgraded BDL from BUY to ADD after the stock has gained 50 per cent in the last six months.
(Disclaimer: Stock investment advice is given by the brokerage house. These are not the personal views of The Financial Express. Markets are risky, so take expert opinion before investing.)
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