Exit Poll Impact: HAL, Bharat Dynamics And Other Defence Stocks Hit Lifetime Highs

Shares of Hindustan Aeronautics Ltd., Bharat Dynamics Ltd. and Bharat Electronics Ltd. hit all-time highs on Monday after exit polls showed a policy continuity by the incumbent government.

The focus of Modi 3.0 will likely continue on developing the country’s public infrastructure, such as roads, water, metro, railways, defence, digital infrastructure, and green technologies, Axis Securities said in a report.

HAL's stock rose as much as 9.45% during the day to Rs 5,444 apiece on the NSE. It was trading 6.62% higher at Rs 5,303 per share, compared to a 2.92 advance in the benchmark Nifty at 10:02 a.m.

The share price has risen 88.83% on a year-to-date basis and risen 179.39% in the last 12 months. The total traded volume so far in the day stood at 0.57 times its 30-day average. The relative strength index was at 78.72, indicating that the stock may be overbought.

Fourteen out of 16 analysts tracking the company have a 'buy' rating on the stock, one recommends a 'hold' and another suggests 'sell', according to Bloomberg data. The average of 12-month analyst price targets implies a potential downside of 3.1%.

Bharat Dynamics' stock rose as much as 6.78% during the day to Rs 1,662.95 apiece. It was trading 3.42% higher at Rs 1,608.50 per share, compared to a 2.91% advance in the benchmark Nifty at 10:18 a.m.

The share price has risen 87.97% on a year-to-date basis and 187.28% in the last 12 months. The total traded volume so far in the day stood at 0.42 times its 30-day average. The relative strength index was at 82.05, indicating that the stock may be overbought.

Seven out of the 10 analysts tracking the company have a 'buy' rating on the stock, one recommends a 'hold' and two suggest 'sell,' according to Bloomberg data. The average of 12-month analyst price targets implies a potential downside of 13.1%.