Upside in key defence names dramatic; calls for caution: Jagdish Malkani, Member, NSE & BSE

In a chat with ET Now, Jagdish Malkani, Member, NSE & BSE, talks a about FDI in defence space.

ET Now: The industry men are talking about FDI in defence. Some of these stocks also — key names — have seen quite a stellar up move. What do you think of it?

Jagdish Malkani: They have moved up dramatically. The up move has been surprising. So, caution is advisable as far as defence stocks are concerned. The onus is on the powers that be — industry body CII — to make sure that this stallion is reined back a bit.

I would be surprised if they okay more than 49% FDI in defence, which in itself is a fantastic step forward.

We are among the largest weapons importers in the world, therefore FDI should be let in so that Indian weapons industry becomes up to speed, so goes the argument for FDI. There are naysayers too. All in all, a huge hype has been created. It can be seen in the way Bharat Forge and the like have moved up.