In the euphoria of a bull market, every sector, no matter how niche, tends to show an upward trend. Investors and traders often see these market phases as easy money opportunities, where every dip is aggressively bought, and profitable exits seem like a given.
When the market cycle turns, the true challenge arises. The once-euphoric traders of 2024 often find themselves caught in a trap, holding onto their investments in 2025, hoping that the prices will eventually return to their previous highs.
One sector that saw considerable hype and growth between 2021 and 2024 was defence. Many defence stocks, like Hindustan Aeronautical Ltd (HAL) and Bharat Electronics Ltd (BEL), experienced significant gains during this period, making them attractive choices for both traders and investors. But with market dynamics evolving and the bull run appearing to slow, one pressing question is: Has the defence theme played out, or is it still worth considering in 2025?
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Between 2021 and 2024, India’s defence sector gained significant attention due to increased domestic defence spending, the push for indigenisation under the ‘Atmanirbhar Bharat’ initiative, and the heightened geopolitical tensions that increased demand for national security equipment. Companies like HAL and BEL benefitted immensely from these trends. However, as the market sentiment shifts in 2025, it is essential to critically assess whether these stocks still offer significant upside potential or have already peaked.
While a comprehensive analysis of the entire Indian defence sector is limited due to the lack of historical data on the Nifty India Defence Index, we can analyse two of the major giants in this space – Hindustan Aeronautics Ltd (HAL) and Bharat Electronics Ltd (BEL). Their respective stock charts provide valuable insights into the possible future trends of defence stocks.
Hindustan Aeronautics Ltd (HAL)
Hindustan Aeronautics Ltd (HAL) is one of the most prominent names in the Indian defence sector. HAL designs, develops, manufactures, and maintains aircraft, helicopters, and related systems for the Indian Armed Forces. As a key player in the aviation segment, HAL has benefitted from increased defence spending and long-term contracts with the government.
Source: TradePoint, Definedge Securities
When analysing HAL’s stock price movements,
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