US Presidential Elections 2024: Mazagon Dock, BEL to HAL — is it wise to buy defence stocks today? | Stock Market News

US Presidential Elections 2024: The outcome of the US Presidential Elections would significantly impact the Indian stock market. According to stock market estimates, in this bitterly fought close election, Donald Trump and Kamala Harris are expected to modernize the US military and enhance the country’s defence budget. This may fuel the defence expenditure of developing nations like India. Hence, buying defence stocks ahead of the US Presidential Election results can be a good bet.

Is it wise to buy defence stocks?

Advising stock investors to look at defence stocks ahead of the US Presidential Election outcome, VLA Ambala, Co-Founder of Stock Market Today, said, “According to my analysis, investing in defence stocks at this time could prove profitable. Historically, Donald Trump has prioritized the modernization of the US military. Major defence contractors like Lockheed Martin, Raytheon Technologies, Northrop Grumman, and General Dynamics could see significant benefits if he returns to power, which may act as a tailwind for India’s defence sector.”

Pravesh Gour, Senior Technical Analyst at Swastika Investment, said, “It is crucial to consider the possible effects of the US presidential election on India-US ties and, in turn, the Indian military industry when considering purchasing Indian defence stocks. The outcome of the US presidential election may have a favourable or unfavourable effect on India’s military industry and, consequently, on the performance of Indian defence stocks. Regardless of US political shifts, the Indian military industry has a strong track record. Although legislative changes may occur under a new US administration, India’s military industry is fueled by both internal demand and strategic alliances with other nations.”

“India’s defence budget has increased to ₹6,21,940 crore, representing 12.9% of the total budget for FY 2024-25. The sector also registered defence exports of ₹21,083 crore in FY 2023-24, a 32.5% increase, underscoring our country’s demand for security and transition from a defence importer to a key global supply chain player. Amid these developments, companies like Hindustan Aeronautics Limited, Bharat Electronics Limited, Bharat Dynamics Limited, and Cochin Shipyard could generate interest among investors,” VLA Ambala added.

Defence stocks to buy today

Asked about shares to buy before the US Presidential election results, VLA Ambala said, “Defence companies Astra Microwave Products, Rossell India Limited, and Data Patterns (India) Ltd could add value to investment portfolios. Investors may also consider defence ETFs like DFND for diversification. I believe Trump’s potential victory could sustain demand for global defence companies and allied contracts, creating new investment opportunities for domestic investors.”

“Important companies with solid foundations, such as Hindustan Aeronautics Limited (HAL) and Bharat Electronics Limited (BEL), are probably going to keep doing well,” said Pravesh Gour of Swastika Investmart.

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.