After the blast in Delhi, Delhi Police is engaged in investigation.
Even though there was a decline in the stock market on Tuesday after the Delhi blast, there was a tremendous rise in defense stocks. A glimpse of the rise in defense stocks was seen when the country's army started Operation Sindoor against Pakistan. During the trading session, shares of defense companies MTAR Technologies, Data Patterns, Dynamic Technologies have seen an increase of 4 to 6 percent. After seeing this rise a question has arisen. Can we see action like Operation Sindoor again? However, both the Defense Minister and the Prime Minister of the country have said that strict action will be taken against those who planned the blast. The role of Jaish-e-Mohammed in this blast is also being investigated. Let us also tell you at what level defense shares are trading?
Defense stocks rose in the morning stock market on November 11, a day after at least nine people were killed in an explosion in a slow-moving car at a traffic signal near Delhi's Red Fort metro station. MTAR Technologies, Data Patterns, Dynamic Technologies have seen gains of up to 6 percent, 5 percent and 5.25 percent respectively. Garden Reach Shipbuilders & Engineers and Solar Industries also gained 2.8 per cent and 4.5 per cent, respectively. Police said that three people were traveling in the car which exploded. He also said that they are also investigating whether it was a suicide attack.
One reason for the rise in defense stocks could be that they had seen an increase of 40 percent to 70 percent when Operation Vermillion was launched as India's response to the Pahalgam terrorist attack in May. On November 11, at 1:10 pm, Nifty India Defense Index was trading 2.17 percent higher at 8,248.85 points, which also reached the day's high at 8,252.65 points. However, Sensex and Nifty were trading with a slight decline.
The special thing is that Goldman Sachs has advised to keep an eye on defense stocks for the next one year. Due to which there is a continuous rise in defense stocks for the last two days. The global brokerage has set a target of 29,000 for Nifty 50 by December 2026, which is about 14 per cent higher than Friday's closing level. Goldman Sachs has identified financial, consumer products, defense and oil marketing companies as key themes for investors over the next year.
Last month, Goldman Sachs had adopted a bullish stance on India's aerospace and defense sector and preferred private players over government-owned competitors. There is a reason for this also. The country has increased its defense export target to Rs 50,000 crore by the financial year 2028-29 (FY 2029) compared to Rs 23,600 crore last year. Among individual stocks, Solar Industries, Bharat Electronics, Data Patterns and PTC Industries are Goldman Sachs' favorite investment picks.
