Chandrayaan-3’s Vikram lands on Moon: Here’s what it means for India's economy and stock markets

Market watchers believe that the triumphant soft landing of Chandrayaan-3’s Vikram Lander on the moon on August 23 will not only be a testament to Indian’s capabilities but could also significantly enhance investor confidence. This is because the mission has been made possible by the hard work of the Indian Space Research Organisation (ISRO) and many companies that are listed on the stock exchanges.

When asked what this means for economy, Sonam Srivastava, smallcase manager and Founder of Wright Research, said, “This could magnetise a greater influx of international investments into the country. Beyond the immediate prestige, the mission holds the promise of unlocking novel commercial avenues in the space domain.”

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Srivastava further added that sectors such as telecommunications, remote sensing and satellite navigation stand to benefit, potentially catalysing job generation and spurring economic growth.

“The national pride and euphoria accompanying a successful landing could positively influence market sentiment, potentially giving a boost to stock prices. However, it’s crucial for investors and market watchers to be pragmatic,” Srivastava said.

Individual investor Safir Anand believes that the landing could trigger huge interest in research and development and collaborative modes. “It can support many small medium companies who provide parts or servicing or MRO (maintenance, repair and operations). It can boost ‘Make in India’ and ‘collaborate with India’,” Anand said.

Abhishek Basumallick, Chief Investment Advisor at Intelsense Capital, added that Chandrayaan is the result of years of multidimensional development. It takes great strides in science, space exploration, material science, engineering and all this at Indian prices.

“The USSR, US and China are the only countries that have achieved this before. A lunar soft-landing portrays to the world that India is both an economic and scientific power to be reckoned with. Although there is no direct and immediate economic benefit, it definitely has enormous signalling power to the rest of the world about India's scientific achievements,” the Kolkata-based investor said.

Kolkata-based investor Soumya Malani said successful landing of Chandrayaan-3 could be huge boost for Indian space economy. “It will definitely attract a lot of investment not only in the companies that have been part of this mission but also overall in the Indian space exploration sector as a whole,” he said adding it would also encourage government to spend more on these missions which can lead to positive sentiment for the related companies.

The market investor further added that these kind of historic events also inspire younger generation to pursue career in such fields which can lead to more skilled workforce in coming times. Since ISRO has been able to achieve this feat at a much lower cost than others could lead to Indian companies winning trust of other International organisations which could lead to more collaborations, tie-ups and orders for them.

“The fact that India is only the 4th country to achieve this feat would be positive on an overall basis for country’s image and the positive spill-over effects could be seen in a lot of other sectors too,” Malani said.

Independent market analyst Ambareesh Baliga also thinks that the landing will help in improving the overall image of the country and perception about of our capabilities.

“Other countries may look to utilise our expertise going ahead. And for the companies which were associated with this project like Larsen & Toubro, BEML, HAL, MTAR etc – it’s sentimentally positive - may give an upside for the stocks in the short term. However, we should remember that these supplies form a small part of their overall revenue and we surely don't expect mass production of Chandrayaans.”

Dwijendra Srivastava, CIO-Fixed Income, Sundaram Asset Management said, “It is a big milestone considering India’s per capita GDP and its pecking order there. It will open up doors for Indian companies in technology-driven space and give a fillip there. Also over a period of time, it will take India higher in the global order.”

Mukesh Kochar, National Head-Wealth Management, AUM Capital added that it is one of the biggest milestones for India. India currently contributes around 2-3 per cent to the global space economy and it is expected to contribute around 8-10 per cent in the next 8-10 years. “This will establish India as a cost-effective satellite launcher and a global opportunity may emerge. Sectors like aerospace and defence will get a boost. There are around 140 registered space startups in India. These startups should attract a lot of investments after the success of this remarkable journey. The budgetary allocation is also expected to increase going forward. So overall this will give a boost to the Indian economy,” Kochar said.