Putin’s visit to India
Russian President Vladimir Putin will begin a two-day visit to India on December 4. During this, he will meet Prime Minister Narendra Modi and participate in the 23rd India-Russia Annual Summit. The focus of this summit will be on trade, defense and strategic cooperation. Investors will especially keep an eye on those defense stocks, which can be directly affected by any new agreement or settlement.
Why will interest in defense sector increase?
Defense cooperation between India and Russia has been strong for a long time. In this tour, big issues like advanced missile defense system, fighter jets and technology transfer can be discussed. Such agreements can bring new opportunities for companies like HAL, BDL and BEL. Investors will keep a close eye on the activities of these companies as any announcement can affect their market value.
Possible defense deals
Analysts are speculating that many big defense agreements can be signed between India and Russia in this summit. These include additional units of S-400 air defense system, S-500 advanced air defense system, 5th generation Sukhoi-57 fighter jets and missile technology and joint production projects. If any of these deals is finalized, the order books of companies like HAL and BDL may remain strong for many years. Especially through technology transfer, indigenous manufacturing capacity will also increase.
What do experts say?
Market experts believe that Putin’s visit is not only a political but also an event with economic and market impact. Companies like HAL, BEL and BDL can benefit in the long run from any defense agreement or technology transfer. S-400 missile system has played an important role in India’s Operation Vermillion. Now in the new agreement, companies like BDL are likely to get a share in local assembly and production, which will strengthen indigenous manufacturing.