look news india
Since the presentation of the budget for the year 2024-25 on 23 July, the stocks of the defense sector have been witnessing a continuous decline.
For instance, shares of Garden Reach Shipbuilders & Engineers have fallen 28.2 per cent since Budget Day, while Cochin Shipyard's share price has dropped 24.7 per cent. The list also includes BEML and Mishra Metal Corporation as well as DCX Systems whose share prices have declined 17.2 per cent, 18 per cent, 11.4 per cent, respectively, since July 23. In comparison, the benchmark National Stock Exchange Nifty 50 has gained 2.7 per cent since July 23.
Since the allocation for the defense sector has not been increased by the Finance Minister in the budget, profit booking is being done by investors, so it is believed that the defense sector stocks have fallen. Of course, this fall in defense stocks is an opportunity for long-term investment. Experts believe that before the general budget was presented, the government presented the interim budget. Due to this interim budget, the value of defense sector stocks became high. Therefore, correction was necessary. Defense sector stocks are likely to remain under control even in the near term due to high valuation. The director of Master Capital Services said, now investors can buy these stocks for the long term.
