Jefferies Fires Up Defence Stocks: Top 3 Picks with Explosive Upside Potential

Welcome Back Investor!

Indian equities opened higher, buoyed by easing geopolitical tensions following emerging ceasefire signals between Iran and Israel. This de-escalation, coupled with a drop in Brent crude prices below key thresholds, lifted investor sentiment and eased inflationary concerns. Lower oil prices are expected to benefit high-consumption sectors like logistics, aviation, and manufacturing.

Let’s dive in!

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▪️ Impact News

▪️ Markets

▪️ Everything else you need to know today

▪️ Special

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IMPACT NEWS

🛡️ India’s Defence Stocks Are Entering a Strategic Inflection Point

India’s defence sector is no longer just a budget line it’s a full-fledged investment thesis. Jefferies has spotlighted three major players HAL, Data Patterns, and BEL as top defence stock picks, with upside potential as high as 32%.

📈 The triggers? A sharp 122% jump in capital expenditure in FY26 and a 25% YoY surge in defence spending. Post-‘Operation Sindoor,’ India is doubling down on indigenous capabilities BrahMos, Akashteer, and Sukhoi jets are no longer just military assets they’re symbols of a rising defence economy.

Jefferies’ price targets:

HAL: ₹6,475 (31.6% upside)
Data Patterns: ₹3,400 (13.9% upside)
BEL: ₹420 (3.1% upside)

🌍 On the global front, defence budgets are ballooning with NATO’s 5% GDP proposal translating to $530B+ annual outlay. India is aligning perfectly with this shift, aiming to double defence exports to ₹50,000 crore by FY30.

Even more telling? The private sector’s share in listed defence stocks has jumped from 9% to 14% with firms like Sunita Tools already landing global contracts.

💡 Bottom line: This isn’t just about defence it’s about economic sovereignty, export ambition, and geopolitical leverage. For smart investors, these stocks could become long-term strategic assets.

MARKETS

Indian stock markets ended on a strong note with all major indices closing in the green. Sensex rose 158 points to 82,055 and Nifty 50 crossed the key 25,000 mark, gaining 72 points. Bank Nifty surged over 400 points, while Nifty Midcap 100 jumped 415 points, showing broad-based buying across sectors. Positive global cues, falling oil prices, and strong domestic flows fueled the rally, boosting confidence across large-cap and midcap segments.
_{Closing figures as on 24.06.25 (3.30pm IST)}

🔎 In Focus

Stock Performance:

Top Gainers

✅ Jio Financial (+2.61%) Strong institutional interest and high trading volume (24M+) fueled the rally. The stock is gaining traction post its re-rating as a standalone NBFC, amid broader optimism in financials after recent RBI liquidity moves.

✅ Adani Ports (+2.56%) Shares climbed as investors cheered the $750M funding deal at Mumbai airport by Adani Group, signaling robust capital access and infra focus.

✅ Shriram Finance (+2.18%) Positive buzz from analyst and institutional investor meetings held today drove buying. Management reaffirmed growth outlook and strong funding visibility.

✅ Grasim (+2.10%) Gains came on expectations that India's anti-dumping measures on Chinese chemicals will benefit domestic producers. Grasim, with presence in viscose and chemicals, is seen as a major beneficiary.

Top Losers

🔻 ONGC (-2.97%) Global oil prices dipped sharply amid Middle East ceasefire optimism and higher inventories. As a crude-linked play, ONGC saw profit booking and sector-wide weakness.

🔻 Power Grid Corp (-1.48%) The stock slipped on sector rotation, as investors moved funds into financials and infra. lack of upside catalysts weighed on performance.

🔻 Trent (-1.02%) After recent strong rallies, Trent faced mild correction amid concerns over high valuations. The market is watching for fresh growth triggers post festive season data.

🔻IndusInd Bank (-0.95%) The bank saw limited downside amid cautious sentiment on asset quality in mid-sized lenders. Slightly lower participation in today’s banking rally kept pressure on.

INDIA FRONTIER

Everything else you need to know today

🧪 Shielded: India has imposed anti-dumping duties on four Chinese chemicals, including Vitamin-A Palmitate and Acetonitrile. The move protects domestic industries and targets a $99B trade deficit. Strategic regulation or quiet trade recalibration?

✈️ Cleared: Adani Group has landed a $750M investment from an Apollo-led consortium to expand Mumbai Airport. With post-pandemic travel soaring, this marks a major runway bet on India’s aviation future.

🧲 Unchained: India plans to finalize a rare earth magnet subsidy within 20 days to cut dependence on Chinese imports. With firms like Midwest and IREL stepping in, this could reshape India’s EV and chip supply chains.

⛏️ Forged: Hindustan Zinc projects ₹50,000 crore in pre-CAPEX free cash flow, driven by productivity and efficiency gains. The goal? Self-funded growth without extra borrowing capital-light, profit-heavy.

SPECIAL

📺 LG Electronics India’s $1.7B IPO: A Consumer Tech Giant Steps Into the Spotlight

LG Electronics is set to launch one of India’s biggest IPOs of the year a $1.7 billion offer-for-sale, representing a bold vote of confidence in the Indian consumer tech market. But make no mistake, this isn’t just a listing it’s a statement.

🔍 What’s Inside the Offer?
The IPO is a pure OFS, with 10.18 crore shares (15% of equity) offloaded by LG’s Korean parent. No fresh capital for the Indian arm, but massive interest is expected given LG’s entrenched market position and stellar financials.

💡 Why It Matters
Since entering India in 1997, LG has grown into a category leader in TVs, washing machines, refrigerators, and ACs, dominating offline retail for over a decade. With ₹21,352 crore revenue, ₹1,511 crore profit, and zero debt, LG India presents a rare blend of scale, profitability, and operational efficiency.

📉 What to Watch
The catch? A ₹6,743 crore royalty dispute with Indian tax authorities looms large. Add to that the lack of fresh issue, dependency on the Korean parent, and internal competition risks and you’ve got a nuanced investment case.

🔮 The Investor Play
This IPO is more than a whitegoods bet it’s a litmus test for brand governance, regulatory clarity, and the evolving nature of foreign subsidiary IPOs in India.

THE HANOOMAAN INSTITUTE

🔮 How to Train Your Quantum Mind in an Age of Uncertainty

Linear thinking got us through the industrial era. But today’s world shaped by AI, rapid change, and nonlinear opportunities requires a mental upgrade.

It’s time to train your Quantum Mind.

Instead of thinking in binaries (yes/no, right/wrong), quantum thinkers explore multiple probabilities at once, just like quantum systems do.

Here’s how to build this game-changing mental edge:

🔁 1. Decision Splitting
Take one problem. Solve it from multiple logic paths emotional, data-driven, intuitive. You’re not indecisive you’re parallel processing like a quantum computer. Use AI tools like ChatGPT to simulate each scenario.

🧠 2. Mental Entanglement
Combine totally unrelated ideas (e.g., "Blockchain" + "Spirituality") to create surprising innovation. This mimics quantum entanglement where unexpected links spark genius. Pro tip: Use random word generators to start.

📉 3. Probabilistic Journaling
Stop journaling in absolutes. Instead, assign probabilities to beliefs and predictions. “Client will close next week: 80%.” You’ll build a sharper forecasting mind aka your inner Bayesian thinker.

🤖 4. AI-Assisted Multi-Path Simulation
Use AI to model multiple future scenarios. Ask: “What’s the best, worst, and likely outcome of this decision?” Let the AI show you alternate timelines and build mental resilience for each.

💡 Bottom Line: Quantum thinking isn’t just philosophy it’s a startup, investing, and leadership superpower. It’s how you turn ambiguity into insight, hesitation into innovation, and AI into a true co-pilot.

Let go of linear.
Step into quantum.
And watch how your thinking and your results shift.

SUPERCHARGE YOUR INVESTING SKILLS

STOCK SCREENER TO UP YOUR GAME

The stocks which are fundamentally strong.
by Paul Dipankar

Market Capitalization >500 AND
Debt to equity <1 AND
Average return on equity 5Years >16% AND
PEG Ratio <1 AND
Promoter holding >30% AND
Sales growth 5Years >16 % AND
Pledged percentage <1

Thanks for reading.

Until tomorrow!

Hanoomaan India Business team

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