₹1,700 Cr Sell-Off: Is India's Defence Boom Overheating?
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Time of India
3 days ago
- Time of India
₹1,700 Cr Sell-Off: Is India's Defence Boom Overheating?
India's defence stocks are flashing red. Mutual funds have offloaded a massive ₹1,700 crore across top names like Solar Industries, Bharat Forge, Zen Technologies, and more, signaling deep concerns over valuation and execution a 3-month rally of up to 84% post-Operation Sindoor, the sector is now facing a reality check. Even institutional bulls like Kotak AMC and Motilal Oswal are tapping the brakes. So, is the defence dream fading — or just recalibrating?In this video, we break down:Why mutual funds are exitingWhich stocks are under pressureWhat experts like Vikas Khemani and Ambareesh Baliga are warningThe long-term opportunity still intactShould you sell, hold, or SIP into defence now? Let's decode. Show more Show less
Economic Times
3 days ago
- Economic Times
India slips to 4th spot among favourite Asian stock market, shows BofA survey
India's stock market has fallen to the fourth place among Asia Pacific's most favoured investment destinations as the Nifty remains trapped in a bruising two-month consolidation with no rescue in sight, according to the latest Bank of America (BofA) survey that signals a shift in fund manager sentiment. ADVERTISEMENT The stunning reversal marks a sharp departure from India's previous position as a regional favourite, with Japan now commanding the top spot "by a distance," followed by Taiwan and South Korea, while India languishes in fourth place as investors flee to semiconductor-driven rallies elsewhere. The BofA survey reveals only 10% of fund managers are now overweight on India, a stark contrast to the 32% backing Japan, 19% supporting Taiwan, and 16% favouring South Korea. The data exposes India's vulnerability in the near term as it struggles with a lack of positive catalysts while regional rivals capitalise on the resurgent semiconductor cycle. "Both Taiwan and Korea are benefiting from the resurgent semiconductor cycle, while Korea gains additional upside from hopes surrounding its new leadership's policy reforms," BofA noted in the survey, highlighting the specific drivers propelling India's competitors survey delivered particularly brutal news for India's once-mighty IT services sector, which has fallen "out of favour" as BofA's India IT services indicator crashed to a 20-month low. This sector-specific weakness adds to the broader malaise gripping Indian VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, painted a bleak picture: "There are no triggers for the market to break out of the consolidation range in which it has been stuck for two months now. Even an India-US interim trade deal has been discounted by the market, leaving no scope for a sharp rally decisively breaking the range." ADVERTISEMENT Vijayakumar identified one potential catalyst that could shock the market higher: "One positive and surprise factor that can trigger a rally is a tariff rate much below 20%, say 15%, which the market has not discounted. So, watch out for developments on the trade and tariff front."The strategist delivered mixed signals on key sectors, warning that "Results of the IT sector continue to disappoint and, therefore, this can remain a drag on the overall market," while suggesting opportunities in banking: "Leading private sector banks are in a defensive mode now. The market is discounting NIM compression in the Q1 results. But this will reverse from Q3 onwards, making them good buys now." ADVERTISEMENT Despite the ranking slide, analysts at Prabhudas Lilladher emphasized India's ability to weather global storms: "Indian markets have shown a lot of resilience in past few months despite big events and disruptions around global tariff wars, Israel Iran war and operation Sindoor."The brokerage noted that while "FII remains net sellers YTD, although they have been net buyers in the past few weeks," highlighting the continuing foreign investor uncertainty plaguing the market. ADVERTISEMENT Prabhudas Lilladher's analysis revealed that Indian markets are trading at a significant discount, valuing "Nifty at 2.5% discount to 15-year average PE at 18.5x with March27 EPS of 1451.5" and setting a 12-month target of 26,889, up from their previous target of 25,521. Also read: Rs 40,000 crore dividend boom! How Ambani, Adani & India's top billionaires got richer in FY25 The survey showed that within India, "investors are keen on consumption and infrastructure plays" while IT services faces sustained pressure. This sectoral rotation reflects the broader challenges facing technology stocks amid global economic uncertainties. ADVERTISEMENT (You can now subscribe to our ETMarkets WhatsApp channel)
India Today
3 days ago
- India Today
Op Sindoor drives BrahMos demand, Lucknow titanium plant joins supply chain
India's supersonic BrahMos missile has gained fresh momentum after Operation Sindoor dealt a decisive blow to terror and military bases inside Pakistan and Pakistan-Occupied-Kashmir (POK). Defence Minister Rajnath Singh has confirmed that more than 14 countries have now expressed interest in acquiring the powerful missile system, which is jointly developed by India and response to this growing demand, a new BrahMos manufacturing facility was inaugurated in Uttar Pradesh's Lucknow shortly after Operation Sindoor. The city's contribution to India's missile capability has received a significant boost with PTC Industries Limited emerging as the country's first private manufacturer of titanium and superalloy components — crucial materials for missiles, submarines, and this breakthrough, India has become the sixth nation in the world with the capacity to produce these advanced materials, joining the ranks of the United States, Russia, France, the United Kingdom, and China. The facility is part of the ambitious Uttar Pradesh Defence Industrial Corridor, under which more than seven defence industries have already begun operations. PTC's Lucknow plant has now started supplying titanium raw material and precision components for BrahMos. Titanium's high strength-to-weight ratio and ability to withstand extreme heat make it indispensable for aerospace and defence Agarwal, CMD of PTC Industries, highlighted that India had previously relied on imports for such critical inputs. "Earlier, we had depended on other countries for key components in aircraft and submarines. Now, India can produce them domestically. This closes a crucial gap and ensures no nation can blackmail us when we need these supplies the most," Agarwal is also producing alloys for global aerospace majors, including Dassault Aviation for the Rafale fighter push for indigenous defence manufacturing has gained urgency as India looks to reduce reliance on foreign suppliers, a need amplified by supply chain disruptions during the Russia-Ukraine conflict. The chiefs of India's armed forces have repeatedly underlined that future wars will be fought with homegrown weapons and Sindoor not only marked BrahMos's combat debut but also served as a demonstration of India's indigenous defence capabilities to the world. To meet the rising demand, a new strategic materials complex with four specialised units was inaugurated last month alongside the BrahMos production line in integrated complex includes a primary metals facility for producing titanium and superalloy ingots, a large-scale casting unit, a forging plant for critical parts, and a precision machining centre for aerospace components such as jet engine blades and missile parts.- EndsTune InMust Watch
