PM Modi US visit: Experts have recommended five defense stocks to buy today — HAL, Bharat Dynamics, Mazagon Dockyard, Cochin Shipyard and Mishra Dhatu
PM Modi US visit: After opening higher during early morning deals, both Sensex and Nifty retraced from its year highs and tumbled to the tune of 0.50 per cent ahead of last one and half hour trade session on Monday. After hitting the eyar high of 18,881 levels, just 6 points away from life-time high, the 50-stock index witnessed sell off heat and hit intraday low of 18,719. Similarly, 30-stock index BSE Sensex opened with upside gap and went on to hit intraday high of 63,574 levels, just 9 points away from record high of 63,583 mark.
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According to stock market experts, Indian stock market is expected to remain volatile ahead of Prime Minister Narendra Modi’s state visit to the US, which is beginning on 21st June 2023. They said that PM Modi is going to the US ahead of upcoming Lok Sabha elections in India and he is expected to ink some populist deals that may strengthen Indian defense system. The deal could be around technology transfer to India and arms manufacturing taking place in India under the banner of Make In India project.
What stock market is expecting
Speaking on what market is expecting from this PM Modi’s US, Chandan Taparia, Derivative & Technical Analyst at Motilal Oswal said, “PM Modi will be on three days state visit to the US and ahead of Indian Prime Minister’s visit to US, US Defense Secretary Lloyd Austin was in India, which signals some major defense deals coming out from this visit. What Indian stock market is expecting from PM Modi visit to US is defense technology transfer and manufacturing of defense products in India under various Indian projects including Make In India. So, we are expecting defense stocks to be in focus ahead of this Primi Minister Narendra Modi’s state visit to US.”
On why PM Modi’s US visit is important from defense perspective, Avinash Gorakshkar, Head of Research at Profitmart Securities said, “Indian Prime Minister is on a state visit which is different from his previous visits to the US. He is visiting US ahead of the Lok Sabha elections and market is eagerly watching whether he buckles under the US pressure on India-Russia oil deal that India has done after the Ukraine war. Big defense deals is definitely expected from this state visit and technology transfer for aircraft manufacturing in India is expected. Apart from this, PM Modi is expected to showcase the big achievements of Indian economy and attract FIIs to come in more numbers as US is reeling under the threat of slowdown.”
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Defense stocks to buy today
On stocks to buy ahead of PM Modi US visit, Profitmart Securities expert batted in favour of defense stocks as they may give sharp upside movement once the visit is over.
On stocks to buy ahead of PM Modi’s US visit, Chandan Taparia of Motilal Oswal said, “One can buy shares of Mazagon Dock Shipbuilders, Bharat Dynamics Ltd or BDL and Hindustan Aeronautics Ltd or HAL. These defense stocks are expected to give around 15 to 20 per cent return to its shareholders in next three months.
On defense stocks to buy today, Anuj Gupta, Vice President — Research at IIFL Securities said, “One can buy Cochin Shipyard and Mishra Dhatu shares as these stock may give up to 20 per cent return in next two to three month time horizon.
