With tensions between india and pakistan escalating over the pahalgam terror attack, investors are now eyeing defense sector stocks. On Tuesday, shares of Paras Defense and Space Technologies Limited, Data Patterns (India) Limited, Hindustan Aeronautics Limited (HAL), Bharat Electronics Limited (BEL) and Bharat Dynamics Limited (BDL) among other companies saw a jump with the expectation that the government may increase spending on the defense sector in the coming times.
Defense sector stocks saw a rise
On april 30, even before the company's board meeting regarding stock split and dividend, the share price of Paras Defense rose by 7.46 percent to Rs 1,227.65. Data Patterns (India) Limited rose 5.55 percent to Rs 2,358.05. BEL rose 3.95 per cent to Rs 317.25. BDL rose 2.63 per cent to Rs 1,527. HAL shares rose 2 per cent to Rs 4,517.
Among shipping stocks, Garden Reach Shipbuilders and Engineers Limited (GRSE) shares rose 4.63 per cent to Rs 2,358.05. Mazagon Dock Shipbuilders rose 3.69 per cent to Rs 2890. Cochin Shipyard rose 2.07 per cent to Rs 1,533.45. However, on Wednesday, april 30, the shares of these big companies of the defense sector saw a decline.
Shares fell sharply today after the surge
Shares of Hindustan Aeronautics (HAL), Garden Reach Shipbuilders and Engineers (GRSE), Data Patterns, Cochin Shipyard and others fell by up to 5.2 per cent during the trading session. GRSE shares recorded the highest decline of 5.2 per cent, followed by Data Patterns (-4.5 per cent) and HAL (-3.1 per cent).
Cochin Shipyard, Bharat Electronics (BEL) and Mazagon Dock Shipbuilders fell by 1 per cent to 3 per cent. However, market experts believe that given the way the geopolitical situation is changing at the global level and the government's increasing expenditure on defence, it would not be wrong to say that India's defence sector can take off rapidly.
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