WATCH OUT FOR STOCKS IN NEWS

Jefferies has expressed optimism about defence stocks HAL, BEL, and Data Patterns, noting their potential amidst rising defence expenditures. India’s defence sector is seeing a significant upturn, with Jefferies spotlighting Hindustan Aeronautics Limited (HAL), Bharat Electronics Limited (BEL), and Data Patterns as top investment picks amid a broader sector expansion. Jefferies' endorsement comes as India's defence spend rose by 25% year-on-year as of March 2025, achieving a 3% growth for FY25. The fiscal year 2026 commenced robustly with a 122% year-on-year increase in April, highlighting a solid start against a budgeted 13% growth. This growth trajectory is a testament to the government's commitment to bolstering the defence sector. Following 'Operation Sindoor' in May 2025, the Indian government intensified its focus on promoting India-made defence equipment globally, aiming to enhance export opportunities. As a result, HAL and Data Patterns have emerged as Jefferies' top picks, with BEL also receiving favourable attention. The government’s strategic initiative aims to significantly boost defence exports, which currently stand at 10% of the ₹30,000 crore target for FY26. These efforts are part of a broader strategy to elevate India's standing in the global defence market. A notable development is Data Patterns' ongoing discussions with a global original equipment manufacturer (OEM) for exporting multimodal hardware defence electronics. This positions the company well for further growth. Jefferies has rated Data Patterns as a buy, emphasising its promising discussions and potential orders, which could bolster its market positioning. The company's proactive engagement with international partners underscores its commitment to innovation and expansion.