Shares of Hindustan Aeronautics (HAL), Bharat Dynamics (BDL), Bharat Electronics (BEL), and other defense companies surged to lifetime highs on June 3 after exit polls suggested the incumbent government would remain in power.
Key Highlights:
- HAL: Stock rose 9.45% to a record high of Rs 5,444. Up 88% this year and 180% over the last year.
- BDL: Stock increased by 6.7% to Rs 1,662.95. Up 88% year-to-date and 187.28% in the past year.
- BEL: Shares jumped over 9% to a new high of Rs 323.
- BEML: Shares also surged over 9% to reach Rs 4,800.
Market Impact:
- Other Gainers: Paras Defence, Solar Industries, Mazagon Dock, MTAR Technologies, Cochin Shipyard, Bharat Forge, Avantel, Garden Reach Shipbuilders & Engineers, and Astra Microwave Products saw gains around 7% during intraday trading.
Analyst Insights:
- Axis Securities: Predict continued focus on public infrastructure development, including roads, water, metro, railways, defense, digital infrastructure, and green technologies.
- Kotak Institutional Equities: Expect government to keep focusing on defense, railways, roads, and manufacturing sectors.
Conclusion:
The exit polls indicating a strong win for the NDA and BJP have boosted investor confidence in defense stocks, pushing them to record highs. Analysts remain optimistic about continued government support in key infrastructure areas.
