Should Investors Invest In Defense Sector Stocks Or Wait For A Correction?

The defense sector is seeing significant activity, with companies like Garden Reach Shipbuilders & Engineers (GRSE) rallying after securing a substantial order. The rising focus on defense modernization, driven by the government's "Atmanirbhar Bharat" initiative, has led to a surge in interest and investment in defense sector stocks. While the long-term outlook for defense stocks is optimistic, some experts are advising caution. Aditya Agarwal of Sanctum Wealth suggests that investors should wait for a potential correction before committing new capital to this sector. He highlights that defense stocks, having rallied strongly over the past few months, may now be trading at elevated valuations.