Budget 2019 Views in Advance – Positive for Defence companies.
Budget will have some impact on sectors like logistics, farming and defence. To play little safer normally budget helps to allocate more money on defence project. Normally budget will allocate from Rs 2.90 lakh crore to 2.95 lakh crores for defence projects and we expect some increase in the allocation as the cost of operation will increase from 5% to 10% every year.
Considering the scenario we expect Bharat electronics has good scope for reversal from Rs 85. We expect the earning will continue to move forward and the stock was already trading at discounted price. If government increase subsidy and add windfall tax to energy stock creates huge downside for ONGC. We recommend to watch and add BEL and add at cmp with the target of Rs 95 and stop loss at 74.95.