India, Sept. 19 -- Indian defence stocks have emerged as one of the strongest pockets of the market despite broader weakness in equities. While the sharp rally has pushed valuations higher, HSBC has initiated coverage of the sector with a broadly constructive view, arguing that India's defence spending cycle still has several years of growth ahead.

The opportunity also extends beyond large platform manufacturers. Higher capital expenditure, rising domestic procurement, stronger exports and expanding order books across aerospace, defence electronics, missiles, unmanned systems and naval platforms could support the wider defence ecosystem.

Why HSBC Sees a Multi-Year Defence Opportunity HSBC's positive sector view stems mainly from expec...