 "defence sector, defence, army, Armed forces")
After lagging behind the broader market over the past three and six months, defence sector stocks have regained ground, reversing their performance from the past month. Concerns about slowing order inflows, execution hurdles, supply chain disruptions, and high valuations had weighed on the sector. However, renewed investor interest is emerging, driven by the government’s emphasis on domestic procurement, export opportunities, European rearmament plans, and recent price corrections.
The immediate catalyst for the sector is the European Union’s (EU’s) decision to increase defence spending by €800 billion. The move aims to strengthen Europe’s defence capabilities and enhance self-reliance, particularly in
