Indian defence stocks witnessed significant gains on Tuesday following the Ministry of Defence's notification of the 6th Positive Indigenisation List (PIL) covering 405 defence items with an estimated business potential of ₹3,070 crore. According to latest reports, the announcement reinforced the government's push to reduce defence imports and expand domestic manufacturing, with the Nifty India Defence Index rising around 1.3% intraday. Among the key gainers, Paras Defence and Space Technologies surged as much as 10%, while Zen Technologies gained around 7-8%. Garden Reach Shipbuilders & Engineers (GRSE), Data Patterns, Dynamatic Technologies, and Aequs also witnessed buying interest across companies operating in defence electronics, aerospace, shipbuilding, defence systems and precision engineering.
In July, the HDFC Defence Fund made significant strategic moves by expanding its defence sector portfolio. The fund added Cochin Shipyard and INDO-MIM as new entrants while increasing stakes in Hindustan Aeronautics (HAL) and Mazagon Dock Shipbuilders. According to the monthly portfolio disclosed by ACE MF, the fund added 3 lakh shares of Cochin Shipyard worth ₹42 crore and nearly 3.30 lakh shares of INDO-MIM worth ₹25 crore in July. Additionally, around 2.10 lakh shares of Mazagon Dock Shipbuilders were added to the portfolio, bringing the total holdings to 15 lakh shares in July compared to 12.89 lakh shares in the previous month. Among the other five stocks where the fund increased its stake, Bharat Electronics received the maximum number of additional shares.
Market experts from Mirae Asset Sharekhan and SMIFS provided comprehensive stock recommendations during NDTV Profit's Ask Profit show. The analysis covered key stocks including Mazagon Dock Shipbuilders, Hindustan Aeronautics, Biocon, Suzlon Energy, and Tata Motors Passenger Vehicles. The experts addressed investor queries about buying, selling, and holding various stocks across different sectors, with detailed insights on fundamentals and technical levels for each recommendation.
Mazagon Dock Shipbuilders is currently trading at ₹2,569.70 and received a Hold recommendation from Sharad Avasthi, Head of Research (PCG) at SMIFS. As reported by NDTV Profit, Avasthi highlighted the company's positive outlook, citing more bullish prospects due to order conversion compared to peers. The expert believes the all-time high order book will be much higher than current levels, supporting the Hold recommendation. Key highlights include: - More bullish on it due to order conversion, compared to peers - Believe that all-time high order book will be much higher than what it is now - Has a huge moat in terms of aerospace - Developments around engine development should be very positive for them
Hindustan Aeronautics is trading at ₹5,059 and received a Hold recommendation with targets of ₹5,500 from Sharad Avasthi. According to NDTV Profit reports, the expert emphasized the company's huge moat in aerospace and positive developments around engine development. The recommendation suggests holding the stock for 3-4 years given the company's strong fundamentals in the aerospace sector. Technical Analysis: HAL continues its strong post-Q1 results momentum with RSI 80.02 and MACD histogram at +28.05. The SuperTrend is bullish with support at ₹4,687.56 and the stock is trading ₹307 above its 20-day SMA of ₹4,751.37. HAL's defence order backlog from Navy submarine, Army helicopter, and Tejas fighter programmes provides the fundamental anchor for sustained momentum.
