Latest news with #AmbareeshBaliga
News18
21-05-2025
- Business
- News18
Drone Stocks Surge 50% Post Operation Sindoor On Hopes Of Defence Orders; Will The Rally Continue?
Last Updated: Defence and drone manufacturing stocks have witnessed a sharp surge following the launch of Operation Sindoor Drone Stocks Rally: Drone manufacturing and defence-related stocks have witnessed a sharp surge following the launch of Operation Sindoor, India's military response to the April 22 terrorist attack in Pahalgam. Since May 7, shares of key players such as IdeaForge Technology, Paras Defence, Zen Technologies, Hindustan Aeronautics (HAL), Bharat Electronics (BEL) and DCM Shriram Industries have gained between 8% and 50%. The rally has been driven by expectations of increased government spending on defence technology, particularly unmanned aerial systems. India's defence ecosystem has matured significantly in recent years, underscored by enhanced integration of indigenous technologies in drone warfare, electronic warfare, and layered air defence systems. The precision and preparedness displayed during recent border escalations have earned international recognition, reinforcing investor confidence in India's defence manufacturing capabilities. 'With greater operational sophistication and reliable indigenous production, Indian defence companies are well-positioned for sustained growth," analysts said. The prevailing sentiment reflects confidence in a new strategic doctrine—swift, technology-led retaliation in response to acts of terrorism. While defence stocks have rallied significantly, several analysts believe valuations are now approaching fair levels. 'India's leading defence names are likely to continue performing well, but future upside depends on several variables including order visibility and budgetary priorities," said Manoranjan Sharma, Chief Economist at Infomerics Valuation and Ratings. Ambareesh Baliga, a Mumbai-based independent analyst, expects momentum in drone-related stocks to continue, with potential gains of another 15-20% in the short term. Long-Term Demand Drivers Operation Sindoor demonstrated the increasing use of drones in both surveillance and combat. Market expectations are building around a sustained push for drone procurement by the Indian military. According to Grand View Research, India's military drone market, valued at $1.53 billion in 2024, is projected to reach $4.08 billion by 2030, growing at a CAGR of 17.9%. What Should Investors Do Now? Despite strong growth prospects, analysts and fund managers are urging investors to remain cautious. 'Drone stocks have seen a rapid run-up, and much of the anticipated government spending is already factored into current prices," said Ashwini Shami, EVP & Portfolio Manager at OmniScience Capital. 'Valuations are now stretched, with many trading at high P/E multiples." Shami prefers public-sector defence firms like HAL and BEL, citing stronger order visibility, wider moats, and more reasonable valuations compared to smaller private peers. The Nifty India Defence Index has rallied 17.9% and 15.4% since the Pahalgam attack and Operation Sindoor, respectively. In contrast, the benchmark Nifty 50 has risen only 2.1% and 1.1% in the same periods. Disclaimer:Disclaimer: The views and investment tips by experts in this report are their own and not those of the website or its management. Users are advised to check with certified experts before taking any investment decisions. First Published: May 21, 2025, 11:21 IST
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Business Standard
14-05-2025
- Business
- Business Standard
Nifty Metal index up 3% on 'lag effect' say analysts; Tata Steel climbs 5%
Metal stocks glittered in trade and gained up to 5 per cent on Wednesday, May 14, 2025. The Nifty Metal index, which tracks the performance of the metal and mining sector in India, rose 2.8 per cent, registering the day's high at 9,085.05. At 10:09 AM, all 15 constituents on the Nifty Metal traded positive. Among others, Tata Steel stock was the top gainer rising over 4 per cent, followed by Lloyds Metal and Energy gained 4.16 per cent, National Aluminium Company rose 4.14 per cent. Jindal Stainless and Steel Authority of India (SAIl) was up over 3 per cent. NMDC, Hindalco, Vedanta, Jindal Steel, and Power were up over 2 per cent. Why are investors buying metal stocks? According to analysts, metal stocks are rising amid easing trade tensions between the US and China. "Metal index is on its upward trajectory as geopolitical tensions have been de-escalating and also, the trade negotiations between US and China are going in a very positive direction," said Kranti Bathini, Director - equity strategy, WealthMills Securities. He added: Nifty Metal was in a consolidation phase recently. Echoing a similar view, independent market expert Ambareesh Baliga said that fear of dumping metal stocks is out as trade war worries are softening. Additionally, according to reports, financial institutions are rethinking their China calls after a trade truce and have lifted China's growth outlook which has also boosted sentiments. ALSO READ | Why are metal stocks volatile since the US-China trade deal on Monday? The US and China reached a temporary 90-day truce on tariffs earlier this week. Under the deal, the US will reduce recent tariffs on Chinese imports from 145 per cent to 30 per cent, while China will lower its duties on US goods from 125 per cent to 10 per cent. On Monday, Nifty Metal gained over 5 per cent on the back of US-China trade deal development. However, it slipped nearly 1 per cent on Tuesday. The rise in metal stocks today is due to a 'lag effect', according to Bathini. A 'lag effect' in the stock market refers to a delay between a cause and its observable impact on stock prices. This can happen as traders and investors may have some other better bet than a specific sector. ALSO READ | US-China trade tariff details Since returning to the White House in January, US President Donald Trump launched a flurry of aggressive trade measures that jolted financial markets and ratcheted up recession fears. The duties, which are designed to narrow the US trade deficit, hit China particularly hard. Trump had imposed tariffs of up to 145 per cent on Chinese imports, prompting Beijing to respond with retaliatory curbs of its own, including restrictions on some rare earth elements.
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Business Standard
13-05-2025
- Business
- Business Standard
Where to invest as markets look past trade, India-Pak war, Q4 earnings?
Stock market outlook: Analysts suggest investors invest in domestic economy-facing sectors Nikita Vashisht New Delhi Stock market strategy: The markets are likely to consolidate in the near-term after a relief rally earlier this week that saw the Sensex and the Nifty 50 record their best day in four years, analysts said. Most positives, they believe, are in the price even as overhang related to foreign investors' inflows and uneasy calm at the India, Pakistan border persists. As an investment strategy, they suggest investors look at domestic economy-facing sectors, which are relatively insulated from global developments. While a major fall in the market from these levels is unlikely with March lows acting as a near-term bottom, Ambareesh Baliga, an independent market expert anticipates the up move to be gradual amid intermittent bouts of profit taking. He expects the 24,000-25,000 zone on the Nifty to be a strong base for the index. "The 900-point rally in Nifty on Monday was unexpected and markets will likely consolidate around current levels," Baliga said. Markets' roller coaster months Indian stock markets have been volatile over the past few months as investors dealt with US President Donald Trump's trade and reciprocal tariffs, corporate results of India Inc, and a war with Pakistan. From a high of 82,133 touched on December 13, 2024 (on closing basis), the BSE Sensex index hit a low of 72,990 on March 4, 2025 (closing basis), dropping over 9,100 points as markets began discounting Trump's tariff rhetoric. A relief rally, however, ensued in the domestic equity markets thereafter as Trump's reciprocal tariffs on India were lower than some of the other emerging markets, especially China. Simultaneously, buying by foreign portfolio investors (FPIs) for the third consecutive month, and de-escalation between India-Pakistan over the weekend, lifted the Sensex back above 82,000 level on May 12. The sharp increase in FPI inflows in recent weeks, analysts at Kotak Institutional Equities (KIE) said, reflected positive sentiment for India among active and passive investors, driven by a 2.5-per cent depreciation in the US Dollar index over the past one month, and high conviction among investors that India could be a relatively 'better' market, considering global growth challenges. In this backdrop, how a tariff-truce between the US and China will affect foreign inflows will hold the key for the domestic equity markets' up move in the coming days, analysts said. "The outlook for the Indian stock market remains excellent from a medium-to-long term perspective. However, in the near-term, investors need to closely watch the contours of the trade deal between the US and China," cautioned G Chokkalingam, founder and head of research at Equinomics Research. A trade deal between two of the world's biggest economies is good for global trade, but Chokkalimgam believes it may be a tad negative for India, which was emerging as an alternative to China. "This, and the sustenance of ceasefire understanding between India and Pakistan at the border, remain two major overhangs on the Indian stock markets," Chokkalingam added. Where to invest in stock market? Against this backdrop, analysts suggest investors invest in domestic economy-facing sectors as steady economic growth, expectations of a 'normal' monsoon and robust food grain output, easing inflation, and signing of various trade agreements bode well for India's economic outlook. Ambareesh Baliga, on the other hand, prefers banks, fast moving consumer goods (FMCG), white goods, automobile and auto ancillary, specialty chemicals, cement, and metals. He is cautious, but not negative, on information technology (IT) stocks, while seeing limited upside in defence stocks. That said, as most sectors are trading at lofty valuations, there could be a possible derating in multiples across sectors in the case of earnings disappointments, cautioned KIE.
Yahoo
09-05-2025
- Business
- Yahoo
How stock markets have been affected by rising India-Pakistan tensions
Indian stock markets fell sharply on Friday as tensions with Pakistan intensified following Operation Sindoor, shaking investor sentiment. The Sensex dropped 880 points to 79,454, while the Nifty held just above 24,000. Broader indices also declined, and volatility surged amid escalating geopolitical uncertainty. Indian stocks opened lower on Friday morning following reports of overnight drone and munition attacks by Pakistani forces along the western border. While headline indices on Dalal Street (where the Bombay Stock Exchange is located) logged steep losses, the broader market took a heavier hit – small- and mid-cap stocks tumbled as much as two per cent. Market volatility spiked further, with the India Volatility Index (VIX) spiking over six per cent to 22.27, signalling rising investor nervousness. Traders said markets had not fully priced in the scale of the latest escalation. 'We're unwinding all risk positions,' one trader told Reuters, warning that any flare-up over the weekend could trigger more selling next week. Veteran investor Ambareesh Baliga said earlier sentiment had underestimated the threat of a wider conflict, amplifying Friday's downturn, according to India Today. Amid the broader selloff, defence stocks stood out as rare gainers. Shares of Bharat Electronics and Hindustan Aeronautics climbed between two to three per cent, as investors anticipated a boost in defence spending and policy support for domestic manufacturers. The Nifty Defence index was the only sector to rise, while all 13 other sectors ended the day with losses. #MarketThisWeek | 👉Market snaps 3-week gaining streak amid India-Pak tensions👉Sensex, Nifty & Midcap Index fall 1% each, Nifty Bank slips 3%👉Nearly 40 Nifty stocks give negative returns this weekHere's more👇 — CNBC-TV18 (@CNBCTV18Live) May 9, 2025 Dr VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said investors should not panic or sell in a hurry. He was quoted as saying by The Times of India: 'Under normal circumstances, on a day like this, the market would have suffered deep cuts. But this is unlikely due to two reasons. One, the conflict, so far, has demonstrated India's clear superiority in conventional warfare, and therefore, further escalation of the conflict will inflict huge damage to Pakistan. Two, the market is inherently resilient, supported by global and domestic macros. Weak dollar and potentially weakening US and Chinese economies are good for the Indian market.' He added: 'The domestic macros construct is further rendered stronger by the high GDP growth expected this year and the declining interest rate environment. These are the reasons why (Foreign Institutional Investors) FIIs have been on a buying spree in the Indian market during the last sixteen trading sessions. Investors should not panic and exit from the market now. Remain invested, monitor the developments and wait for the dust to settle.' Earlier, Prashanth Tapse, senior VP (research), Mehta Equities Ltd told The Indian Express: 'There is growing uncertainty in the markets as investors are worried that the ongoing tension resulting in a major conflict between the two nuclear-powered nations going ahead could spark a major sell-off in equities, and hence profit-taking was seen in almost all the sectors barring select IT counters.' Meanwhile, in global markets, Japan's Nikkei and Topix rose 1.2 per cent after a US-UK trade deal lifted investor hopes for broader negotiations. Other Asian markets showed mixed results: Hong Kong's Hang Seng gained 0.2 per cent, Taiwan's stock index rose 1 per cent, and Australia's ASX climbed 0.4 per cent. The Indian rupee weakened by 30 paise, trading at 85.88 against the US dollar, while the dollar index dipped slightly to 100.6.
The Independent
09-05-2025
- Business
- The Independent
How stock markets have been affected by rising India-Pakistan tensions
Indian stock markets fell sharply on Friday as tensions with Pakistan intensified following Operation Sindoor, shaking investor sentiment. The Sensex dropped 880 points to 79,454, while the Nifty held just above 24,000. Broader indices also declined, and volatility surged amid escalating geopolitical uncertainty. Indian stocks opened lower on Friday morning following reports of overnight drone and munition attacks by Pakistani forces along the western border. While headline indices on Dalal Street (where the Bombay Stock Exchange is located) logged steep losses, the broader market took a heavier hit – small- and mid-cap stocks tumbled as much as two per cent. Market volatility spiked further, with the India Volatility Index (VIX) spiking over six per cent to 22.27, signalling rising investor nervousness. Traders said markets had not fully priced in the scale of the latest escalation. 'We're unwinding all risk positions,' one trader told Reuters, warning that any flare-up over the weekend could trigger more selling next week. Veteran investor Ambareesh Baliga said earlier sentiment had underestimated the threat of a wider conflict, amplifying Friday's downturn, according to India Today. Amid the broader selloff, defence stocks stood out as rare gainers. Shares of Bharat Electronics and Hindustan Aeronautics climbed between two to three per cent, as investors anticipated a boost in defence spending and policy support for domestic manufacturers. The Nifty Defence index was the only sector to rise, while all 13 other sectors ended the day with losses. Dr VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said investors should not panic or sell in a hurry. He was quoted as saying by The Times of India: 'Under normal circumstances, on a day like this, the market would have suffered deep cuts. But this is unlikely due to two reasons. One, the conflict, so far, has demonstrated India's clear superiority in conventional warfare, and therefore, further escalation of the conflict will inflict huge damage to Pakistan. Two, the market is inherently resilient, supported by global and domestic macros. Weak dollar and potentially weakening US and Chinese economies are good for the Indian market.' He added: 'The domestic macros construct is further rendered stronger by the high GDP growth expected this year and the declining interest rate environment. These are the reasons why (Foreign Institutional Investors) FIIs have been on a buying spree in the Indian market during the last sixteen trading sessions. Investors should not panic and exit from the market now. Remain invested, monitor the developments and wait for the dust to settle.' Earlier, Prashanth Tapse, senior VP (research), Mehta Equities Ltd told The Indian Express: 'There is growing uncertainty in the markets as investors are worried that the ongoing tension resulting in a major conflict between the two nuclear-powered nations going ahead could spark a major sell-off in equities, and hence profit-taking was seen in almost all the sectors barring select IT counters.' Meanwhile, in global markets, Japan's Nikkei and Topix rose 1.2 per cent after a US-UK trade deal lifted investor hopes for broader negotiations. Other Asian markets showed mixed results: Hong Kong's Hang Seng gained 0.2 per cent, Taiwan's stock index rose 1 per cent, and Australia's ASX climbed 0.4 per cent. The Indian rupee weakened by 30 paise, trading at 85.88 against the US dollar, while the dollar index dipped slightly to 100.6.
