Putin India Visit: The India-Russia summit to be held on December 4 can prove to be a big moment for the market. Movement in Indian defense stocks has intensified ahead of Russian President Vladimir Putin’s visit to India. Know which stocks may be affected…
Stocks in Focus Putin Visit: Russian President Vladimir Putin is arriving on a two-day visit to India on Thursday, December 4. Putin will meet Prime Minister Narendra Modi at the 23rd India-Russia Annual Summit. In this meeting, important decisions can be taken on trade, defense and strategic partnership and its direct impact can be seen on the defense sector of the stock market. With this visit of Putin, investors are keeping their eyes on defense stocks like HAL, BEL, BDL, because if any big deal, technology transfer or joint project is announced in this summit, then these stocks can show strong movement.
Why is Putin’s visit to India so important for the market?
The time of this journey is also very special. India-US trade deal is going on, tension is increasing at the global level and India is strengthening its defense and strategic relations with Russia. Experts believe that if the India-Russia alliance becomes stronger, then America’s reaction will also be worth watching, which can bring short-term fluctuations in the market, such as mild pressure on the rupee, increase in risks in emerging markets and sharp movement in defense stocks. Market experts believe that Putin’s visit could be a geo-political event that shakes the market. There is a high possibility of big announcements especially in the defense sector.
Which defense stocks will be in maximum focus?
Technology Transfer and Local Manufacturing Deals
If India and Russia agree to jointly manufacture missiles, air defense systems or jet engines in India, then HAL (Hindustan Aeronautics Ltd), BEL (Bharat Electronics Ltd) and BDL (Bharat Dynamics Ltd) will benefit. Vendor companies around these companies will also benefit. This deal will strengthen the multi-year capex cycle in India’s defense sector.
New deal for S-400 missile system possible
The Kremlin has already indicated that additional purchases of S-400 missile systems may be included in the talks. Market experts say that the S-400 proved to be very effective in India’s drone and air defense strategy. It was a major success in Operation Sindoor. The new deal may also include technology transfer. This will give companies like BDL an opportunity to make missile components locally. This will further strengthen Indian defense manufacturing.
Talks on Sukhoi-57 and S-500 systems
Sukhoi-57 fifth generation stealth fighter jet and S-500 advanced air defense system are expected to be big topics on the agenda of Putin’s visit. The role of HAL will be very important in this because HAL is the leader of aircraft manufacturing and maintenance in India. HAL’s participation in any jet project from Russia is almost certain. Putin’s visit to India will accelerate air defence, missile technology and fighter aircraft deals. Due to this, stocks like HAL and BDL can remain in the limelight.
Disclaimer: The information given in this article is for general information only. This is not investment advice or financial recommendation of any kind. Investing in the stock market is subject to risks. Always consult a financial advisor before taking any investment decision.