Defence stocks don't live up to expectations in Modi 3.0 The defense sector in India is experiencing a complex scenario under the current political climate, despite the push for indigenization and modernization led by the Modi administration. Companies like Hindustan Aeronautics Limited (HAL) and Bharat Electronics Limited (BEL), which have secured substantial orders from the Indian Army, are seeing a paradoxical drop in share prices. This trend can be attributed to several interrelated factors that are both internal and external to government policies. The coalition status of the BJP, lacking a full majority, introduces an element of political instability that affects market confidence. The uncertainty surrounding the Agniveer scheme, which is undergoing regulatory changes, further contributes to the sector’s instability. These shifts in defense policies and initiatives reflect an environment of unpredictability, impacting investor sentiment and stock performance. Moreover, there ...