Defense biggest theme of the decade and not oil, natural resources or forex. Gurmeet Chadha explains why

Amid rising geopolitical tensions following the US invasion of Venezuela and the arrest of President Nicolas Maduro on drug trafficking charges, the global focus has returned to military strength as the cornerstone of national power, while the episode poses potential risks to market sentiment.In an era when territorial sovereignty, trade interests and energy routes are increasingly contested, defense preparedness is central not only to diplomacy but also to investment portfolios.

It is in this context that Gurmeet Chadha, Managing Partner and Chief Investment Officer at Complete Circle Consultants, has called defense ‘the biggest theme of the decade’.Taking to social media platform

“The greatest strength is not oil reserves, natural resources, export competitiveness, currency reserves…,” he wrote, adding that it is military power and advanced defense capabilities that determine a country’s true status. “Defense is the biggest theme of the decade!!” he concluded in his post.

Chadha underlined the structural importance of the sector at a time when both global and domestic forces are moving in favor of the sector. His comments reflect broader market sentiment as defense stocks continue their upward momentum on Monday.

At 1.45 pm on Monday, the Nifty India Defense index was up 2.03%, buoyed by strong performance in key components.

Shares of MTAR Technologies rose 4.72%, while shares of Data Patterns rose 3.75% and shares of Solar Industries rose 3.23%. Shares of Bharat Dynamics rose 3.12%, while shares of Astra Microwave and Paras Defense rose 3.08% and 2.82% respectively.

Further, shares of Bharat Electronics rose 2.70%, GRSE rose 2.46%, HAL rose 2.36% and BEML gained 1.53%.

Also read: BEL, HAL and other defense stocks rise to 5% after US raids in Venezuela

This broad rally reflects continued investor interest in the defense theme, especially as global risk factors and policy initiatives continue to reshape sector priorities.

(Disclaimer: Recommendations, suggestions, views and opinions expressed by the experts are their own. These do not represent the views of The Economic Times)