Defence stocks are in the green as the border tensions with China escalates. Bharat Dynamics rose over 4.5% to Rs.274.80; Hindustan Aeronautics rose over 4% to Rs.736; Reliance Naval was locked at the 5% UC of Rs.2.13; BEL rose over 3% to Rs.72.75; Astra Microwave was up almost 3% at Rs.93.80 but is now in the red.
For the market, every adversity is an opportunity and thus this current tension with China also presents an opportunity and the market looks at a probable (unlikely) war situation as a good time for the defence stocks.
But this is just the momentum currently and will fizzle out once the tension goes down. Although what remains good for the sector is the increase in FDI in the defence sector from 49% to 74% via the automatic route.