Indian defence stocks have seen an average year-on-year gain of 67 per cent, driven by renewed interest following 'Operation Sindoor' and a broader increase in global geopolitical tensions, with the combined market capitalisation of 18 firms increasing by approximately 2.3 trillion.
India's defence expenditure surged to $92.1 billion in 2025, making it the world's fifth-largest military spender, according to SIPRI data. This 8.9 per cent year-on-year rise was primarily driven by operational and procurement needs following heightened regional tensions with Pakistan in May 2025.
China will increase its defence spending by "around seven per cent" this year, as it vowed to guard against "outside meddling" in its territorial disputes.
India should not stay on the margins of this initiative. There should be a serious debate about what would be in India's best interests asserts former foreign secretary Shyam Saran.
Following through announcements with enforcement of measures is key, as a run through recent Indian economic history shows, points out A K Bhattacharya.
'Except for extremely conservative investors, others can consider allocating 10 to 20 per cent of their portfolio to small caps.'
The conflict may disrupt Budget 2026-2027 projections, squeezing revenues and raising subsidies, prompting fiscal adjustments and potential reforms, echoing lessons from the Covid-era shock, points out A K Bhattacharya.
Only experienced investors with a high risk appetite, a grasp of market cycles, and comfort with volatility and timing risk should invest.
Let's work flat out and create a policy framework that fosters the growth of Indian non-family business VC and private equity firms. This will allow our Indian startups' dreams to flourish, explains Ajit Balakrishnan.
Movement in the equity market this week will be guided by a host of macroeconomic data announcements, global trends and trading activity of foreign investors, analysts said. Stocks markets concluded the last week on a subdued note, as investors grappled with global uncertainties.
India's defence sector presents an ordering opportunity worth $138 billion between fiscal years 2023-24 (FY24) and FY32, said a latest note by Nomura, which has initiated coverage on two defence-related players - Hindustan Aeronautics (HAL) and Bharat Electronics (BEL) - with a 'buy' rating. The research and broking house sees an upside potential of 28 per cent and 32 per cent, respectively in these two stocks from the current levels.
From the Sensex firms, Mahindra & Mahindra, HCL Tech, Tata Motors, Nestle, ITC, Hindustan Unilever, Larsen & Toubro, and Tech Mahindra were the biggest gainers. In contrast, Eternal, UltraTech Cement, Power Grid, Tata Steel and Kotak Mahindra Bank were among the laggards. Eternal dropped 4.51 per cent.
'The Chinese being focussed more seawards is definitely better for India with China being the looming threat along our land borders,' says Brigadier S K Chatterji (retd).
Dalal Street minnows stole the show in 2024, giving handsome returns to investors, helped by a largely optimistic trend in the stock market and impressive retail investors' participation. Analysts attributed the positive trend in the equity markets, where the benchmark indices shattered many records this year, to robust domestic liquidity, strong fundamentals of the Indian economy, and policy continuity.
India spent USD 63.9 billion on its military in 2017, an increase of 5.5 per cent compared with 2016 and of 45 per cent since 2008.
India needs another shot of difficult reform, of the kind only possible at gunpoint. Mr Trump holds that gun to our heads now. A drastic reduction in tariff protection, other elements of sarkari wet-nursing will force entrepreneurial India to become competitive again, argues Shekhar Gupta.
Stock market investors are expecting a balanced Budget with a focus on job creation, increased spending on infrastructure, reigning in the deficit, and bringing the economy back on track, experts said on Wednesday. Stock markets have been subdued in the run-up to the Union Budget with BSE's benchmark Sensex is almost flat so far this month. Even the corporate earning season failed to excite the markets, while some indices like IT and bankex have seen some positive movements.
'India represents one of the top opportunities with robust growth, solid fundamentals, and openness to foreign investment.'
'Surely, Syrian President Bashar al-Assad will not be able to pay or compensate the Russians for deployment and use of Russian men and equipment,' says Brigadier S K Chatterji (retd).
The statements come from a booklet published this month by the state-run People's Publishing House, in which senior officials, including President Xi, outlined the latest five-year plan for the country's development.
'As we enter 2025, it must be acknowledged that there is a convergence of capital, influential people (from business and politics) and technology deciding the destiny of others in the name of pride, patriotism, nationalism, nation building, all of it thinly veiled disguises for personal profit and glory,' asserts Shyam G Menon.
'Like every Budget, this time, too, there is chatter around tinkering with the long-term capital gains tax.' 'Investors may not want to jump into the markets until there is clarity on this front.'
'If private capex has to kick in, there should at least be 2-3 years of visibility.'
'A fair bit should be allocated towards fixed income.'
There are two ways: Deliver a rapidly growing economic pie or reform GST and close corporate tax loopholes, suggests T N Ninan.
Leading global defence planners and financial managers on Monday said India would continue to be a major arms purchaser, but needed to streamline arms spending and procedures to catch up with new trends.
Weak monsoon forecast rekindled fears of higher inflation.
'This is a historic juncture when the US is in great need of an alliance with India to strengthen its hands in the fierce struggle with China in the Asian theatre,' points out Ambassador M K Bhadrakumar.
'The economy needs to deliver the expected 7.5% growth for the markets to deliver better than single digit returns.' 'Any disappointment in growth can see the markets correcting downwards.'
'Should the two armies clash in a conventional battlefield, the advantage will pass more and more to the Indians as the battle progresses,' says Brigadier S K Chatterji (retd).
India's upbeat outlook contrasts with neighbouring China, where growth slipped to 6.7 in the first quarter
The government had committed to increasing spending in infrastructure
India is affected by a 'resource inefficiency curse'.
News of all that's transpired on and off the football field
The budget-making exercise offers golden opportunities despite challenges, observes Shankar Acharya, former chief economic adviser to the Government of India.
Silicon Valley is at the heart of the transformation of the global economy -- which has both winners and losers, writes Ajit Balakrishnan.
Perhaps, the most misunderstood aspect is the role of the state.
All that India must aim for is to match China's military prowess adjusted to equal Beijing's India-specific military capability, argues Vivek Gumaste.
The remarkable feature of those reforms unveiled in 1991 is that none of those decisions has been disowned by subsequent governments in the last 25 years.
Secretary Tillerson met with Foreign Secretary Jaishankar on Friday to discuss the US-India relationship and the agenda for Prime Minister Modi's meetings at the White House on June 26, a State Department spokesman said told PTI.
