Buy HAL & BEL shares: Rudra Murthy; says this on Mazagon Dock & GRSE

Rudra Murthy BV, MD at Vachana Investments, remained cautious on the market amid escalating geopolitical tensions. Commenting on defence stocks, the market expert believes that only two stocks from the select pack currently offer maximum upside potential.

"I would buy only two counters from the defence pack, which are Hindustan Aeronautics Ltd (HAL) and Bharat Electronics Ltd (BEL). These two stocks should be in everyone's portfolio without fail," Murthy said in an interaction with Business Today on Monday.

"I will be a buyer in HAL and BEL. One should hold HAL shares in their portfolio as the stock can reach levels of Rs 8,000-10,000 levels in the next one year. And BEL can see upside levels of Rs 500-600 in the same period," he added.

He also shared his views on Mazagon Dock Shipbuilders Ltd and Garden Reach Shipbuilders & Engineers Ltd. "These two stocks are richly valued and they are discounting 2-3 years of earnings ahead, which is a concern. That said, they are good companies but at higher valuations. Unless you have a 5-year perspective, I won't pick these two shipbuilding companies for now," the market specialist stated.

Meanwhile, higher crude oil prices weighed heavily on domestic benchmarks, as US strikes on Iran sparked concerns that Tehran may block access to the Strait of Hormuz -- a critical shipping route through which crude imports from Iraq, Saudi Arabia, Kuwait, and the UAE flow, accounting for 45–50 per cent of India's total crude oil imports.

Equity investors are expected to closely track oil price movements, which have been on an upward trajectory for the past three weeks. Focus will also remain on any potential retaliatory actions from Iran that could further roil the markets in the near term.