India’s sector is once again in limelight, specially after increased tensions with Turkey. The government’s strategic shift highlights the pressing importance of advancing defence technology indigenisation, while at the same time strengthening partnerships with Turkey’s adversaries.
“The recent joint naval exercises with Greece and Cyprus highlight New Delhi’s intent to counter Ankara’s growing involvement in South Asia and its deepening military cooperation with Islamabad and Azerbaijan. At the same time, India is enhancing defence ties with Israel, a long-standing strategic partner, thereby cementing a multi-pronged strategy aimed at building deterrence against hostile regional alliances.
The sector is undergoing a structural transformation, driven by rising geopolitical threats, a determined push for self-reliance, expanding export opportunities, and the growing participation of private companies and startups in areas such as aerospace, artificial intelligence, cyber defence, and drone technologies,” said Sugandha Sachdeva- Founder-SS WealthStreet.
According to Sachdeva, the domestic market is projected to grow sixfold over the next 20 years, exceeding ₹10 lakh crore, making it one of India’s most promising long-term growth stories.
She further said that exports are also expected to rise sharply, supported by the government’s policies like positive indigenisation lists, production-linked incentives, and liberalised FDI norms. is clearly at the heart of the Atmanirbhar Bharat agenda, with an emphasis on both capacity building and global competitiveness.
Defence stocks to buy
From an investment perspective, the sector offers significant long-term opportunities, and several stocks stand out. Sachdeva recommended these three to buy amid rising geopolitical tensions.
Hindustan Aeronautics
Hindustan Aeronautics Ltd has been a consistent beneficiary of large defence orders, particularly in combat aircraft and helicopters. Technically, the stock has formed a strong base around Rs.4,300 and recovered sharply; a breakout above Rs.5,000 could drive momentum towards the Rs.5,600–5,800 zone, as per Fibonacci projections.
Cochin Shipyard
Cochin Shipyard Ltd, with a robust order book comprising warships, aircraft carriers, and submarine support vessels, has emerged as a key naval PSU. The stock has filled a gap at Rs.1,575 and witnessed a strong surge. Sustaining above the Rs.1,780–1,820 range, where multiple moving averages converge, suggests strong base formation. A breakout above Rs.2,000 could trigger an up-move towards Rs.2,400–2,550 in the medium term.
Paras Defence
Paras Defence has also been in the spotlight after its subsidiary secured an order worth Rs.461.9 million from the Ministry of Defence for anti-drone systems. The stock is holding firmly above its 20, 50, and 100-day EMAs on the weekly chart. With support at Rs.600, it looks poised for an up-move towards Rs.820 initially, and a breakout above that level could extend gains towards Rs.1,020.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.