Want to add Defence stocks in your portfolio before Budget? Here's when to buy them

Indian equity markets facing dilemma of 'what not to own', says Chris Wood; PSU stocks lead bull market: Ramesh Damani

Jefferies' Global Equity Strategist Chris Wood said that the problem in Indian equity markets is “what not to own”. Talking to CNBC-TV18, he shared his views on PSU stocks and how he missed out on the rally in Defence stocks. Veteran investor Ramesh Damani, who was one of the early backers of PSU stocks, said that the PSU stocks have been the leaders in this bull market.

India's defence stocks like Bharat Electronics, Bharat Dynamics, Hindustan Aeronautics have gained between 150% to 200% in the past 12 months.

He asserted that owing to better corporate governance and higher government expenditure the stock will continue to do well although “eventually, all bull markets end and so will the bull market in public sector stocks I'm sure. But till then, there is a party going on.”

Replying to this, Chris Wood said that when he first heard about India's defence sector three years ago, he missed adding defence stocks to his portfolio.

"My portfolio has been built on property, energy and infrastructure but the missing part of my portfolio has been defence," he said. This comes as in the past 12 months, India's defence stocks like Bharat Electronics, Bharat Dynamics, Hindustan Aeronautics have gained between 150% to 200%. In the same time, shipbuilders like Mazagon Dock and Cochin Shipyard have rallied up to 700%.

Chris Wood also talked about US presidential elections and said that if Donald Trump is elected President of the United States , it could lead to a resolution of the Russia-Ukraine War. It that happens, it may lead to some correction in defence stocks, he said, adding, “Lets say that there is a sudden resolution of this conflict, maybe the defence stocks will correct and that might be an opportunity to add.”