Thinking about chasing rallies in defence and energy? Experts warn against it.

Thinking about chasing rallies in defence and energy? Experts warn against it.


Intermittent gains, immediate corrections

Movements in the defence and energy sectors have been anything but linear. Prashant Mishra, founder and CEO, Agnam Advisors, said, “Defence stocks saw an immediate sentiment-driven rally at the start of March as geopolitical tensions escalated, with another sharp spike around 6-7 March and a more pronounced move near 17 March, when the sector rose nearly 7%.” To put this into perspective, the Nifty India Defence Index returned 13.9% over the past year (1 April 2025 to 1 April 2026) excluding dividends, interests, and coupon payments.

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