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PSU Stocks: Defense Stocks: Long runway, needs some hedging to avoid narrative-driven decisions; 8 PSU and Pvt sector stocks, 4 with upside potential up to 44%

Posted on by darion

summary

There are certainly times during election season where one narrative or the other may pose one question as to whether or not you should sell your stock. The basic reason would be the fear of losing the profits you are sitting on. Especially when it comes to sectors such as defense, railways and others, which have seen strong re-recommendations and locations with strong gains, while at the same time there has been skepticism about the future movements of their share prices. Now let’s look at this issue in two ways: firstly, whether the fundamentals of the sector are strong and the business is doing well or not. Secondly, how to hedge exposure so that you are not forced to sell for the sake of the narrative, because the fact is that the continuation of the policy means that companies have only just started their journey. While defense contractors are well known, there are other private sector players whose survival depends on defense spending and have also done well over the past few years, both on the street and in the real business. So it’s better to protect yourself, stay with them and not get upset about this or that narrative that will be circulating on the streets until June 4.

One of the sectors that has received the strongest recommendation over the last four years is defense. Now, in the last few days, the situation in the markets has improved and the narrative on the streets is that it is the fluctuations in the polls that are causing the selling of FPIs, not realizing the fact that after a strong phase of upward movement, the global money tends to to move from one country to another, especially in the emerging market segment. Trouble getting it

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