Mumbai— Amid heightened market volatility driven by geopolitical tensions, financial experts on Wednesday urged investors to stay calm and avoid impulsive buying—especially in defense stocks.
Indian defense stocks remained largely flat following India’s successful execution of ‘Operation Sindoor,’ a precision strike targeting terror infrastructure in Pakistan and Pakistan-occupied Kashmir.
Analysts advised a cautious, long-term perspective instead of making emotionally driven decisions.
“This is a time for careful planning rather than rushed moves or panic buying,” said Dr. Vikas Gupta, CEO and Chief Investment Strategist at OmniScience Capital. “Long-term opportunities still exist, particularly in the defense sector.”
Gupta emphasized the importance of avoiding fear-based or FOMO-driven (fear of missing out) investing. Instead, he recommended that investors maintain a watchlist of sectors and companies with strong long-term fundamentals.
“The key is to allocate capital gradually and rationally, tuning out short-term market noise,” he said.
The defense sector, Gupta noted, remains a critical area of focus. With robust existing order books, defense firms are well-positioned to benefit from increased government spending following the recent military operations.
“Operation Sindoor may accelerate the pace of project execution in the sector,” he added.
Experts also pointed out that many defense stocks had already experienced a strong rally in recent sessions, particularly after the Pahalgam terror attack. The real financial impact of increased spending, they said, may become more visible over the next few quarters.
Growth areas are expected to extend beyond traditional arms and equipment, encompassing cyber security, strategic minerals, rare earth elements, oil and gas, military infrastructure, and logistics.
Despite the strategic outlook, key defense stocks such as Bharat Dynamics, Hindustan Aeronautics, Bharat Electronics, and BEML showed little movement during the trading session. Shipbuilding stocks including Mazagon Dock, Garden Reach, and Cochin Shipyard also traded flat.
Experts reiterated that while the defense sector holds long-term promise, investors should approach it with discipline and patience, not panic. (Source: IANS)
