#38 - WK25
From Importer to Exporter
Picture this: a newly built airport in the middle of what was once farmland, its first flight landing to the sound of a water cannon salute and passengers, farmers who had sold their land for this very project, clapping as the wheels touched down. That is how India’s week began.
On June 15, the Noida International Airport at Jewar officially opened for commercial operations, quietly rewriting the map of North India’s connectivity. IndiGo flew the inaugural route in from Lucknow. What looks like a ribbon-cutting ceremony on the surface is something far larger underneath, a ₹11,200 crore greenfield project designed to absorb the overflow from Delhi’s increasingly strained Indira Gandhi International Airport, and eventually scale to 70 million passengers a year. That is bigger than the current annual throughput of major European hubs. The airport is built under a public-private partnership with Zurich Airport International.
The same day, something rather different was happening off the Odisha coast. India’s Defence Research and Development Organisation quietly but decisively fired its Long Range Land Attack Cruise Missile, the LRLACM from Dr. APJ Abdul Kalam Island, and every mission objective was met. The missile, entirely indigenous in design, is reported to be capable of reaching targets approaching 1,000 kilometres away with a 450-kg warhead. It flies low, navigating terrain, making it difficult to detect or intercept. What this test marks is not just a technical achievement but a shift in posture: the Indian Navy and Air Force were both present at the launch, signalling that this is being developed as a tri-service weapon land, sea, and air will all eventually carry it.
Meanwhile, on the other side of the world, at BER Airport in Berlin, the ILA 2026 aerospace exhibition had just wrapped up, an event that in previous editions was mostly about fighter jets and commercial aviation, but this year signalled a changing of the guard. Drones dominated. For the first time in the show’s 117-year history, ILA introduced a dedicated Drone Pavilion, with live demonstrations and a cage where unmanned systems flew in real time before audiences. The message from Berlin was clear: the future of aerospace is not a pilot in a helmet; it is a drone on a screen. Defence spending across Europe is rising sharply, and what gets built matters, ILA 2026 was as much a policy statement as a trade fair.
Stock Market
The Sensex closed the week at 76,802.90, up 1.69%, a gain of roughly 1,275 points. The week started strong, riding a wave of relief after the US and Iran agreed to a framework to end hostilities and reopen the Strait of Hormuz on Sunday, June 15, which sent crude oil prices sharply lower and boosted risk appetite globally. Markets extended gains across Monday through Thursday, with Sensex touching 77,410 intraday on Thursday, before Friday saw a reversal, Sensex fell 607 points on the final session as IT stocks sold off and global cues turned cautious. The key drivers this week were energy price relief from the Iran ceasefire deal, BFSI and Auto sector gains, and broader market participation with midcaps and smallcaps outperforming benchmarks on several sessions.
The DAX closed the week at 24,985.82, gaining 1.42% over last week's close of 24,635.30. German equities were lifted early in the week by two back-to-back positive developments: the US-Iran ceasefire opening the Strait of Hormuz, which eased energy price fears for Europe's energy-import-heavy economy, and Germany's ZEW Investor Sentiment Index turning positive for the first time since March at +10.5, beating expectations of -6.0.
Germany News Roundup
Industrial Orders Fell 3.8% in April: German manufacturing orders dropped 3.8% in April after a March spike driven by pre-Iran war stockpiling, pointing to volatile industrial demand ahead.
Industrial Output Stagnates: German industrial production rose just 0.4% in April — still approximately 12% below pre-pandemic levels — leaving Europe’s largest economy on shaky ground.
Automotive Sector Rebounds in ZEW: The automotive industry’s sentiment balance rose 21.9 points in June, while chemicals and mechanical engineering also improved, though all sectors remain in negative territory.
Uniper Eyes Stock Market Listing: Uniper, Germany’s state-rescued energy giant, is preparing for a potential stock market listing while a Canadian investor consortium also considers acquiring a majority stake.
Refugee Deportation Rules Discussed: Germany’s regional interior ministers held their biannual conference with immigration, deportations, and asylum benefits topping the agenda on June 17.
September State Elections Loom: Chancellor Friedrich Merz warned that upcoming state elections in Saxony-Anhalt, Berlin, and Mecklenburg-Vorpommern will be a critical test for Germany’s political centre.
India News Roundup
Defence Production Record: India’s defence production hit a historic high under the Atmanirbhar Bharat initiative, with the Indian Army also receiving 106 Peacekeeper (Agniveg) jet-powered kamikaze drones from SMPP.
Sarvam AI Hits Unicorn Status: Sarvam AI became India’s 130th unicorn after raising USD 234 million, emerging as a key player in India’s domestic AI infrastructure push.
Wind Energy Portal Launched: Union Minister Pralhad Joshi launched the WT-MARUT portal to strengthen India’s wind energy supply chain, targeting a 100 GW wind capacity by 2030.
India-Canada FTA by End of 2026: India and Canada aim to finalise a Free Trade Agreement by end-2026, which could open significant new investment and trade corridors.
FPIs Pull ₹62,800 Crore in June: Foreign portfolio investors pulled out a massive ₹62,800 crore from Indian equities in June amid global portfolio rotation toward AI-linked assets.
Telegram Blocked in India: The Centre blocked Telegram under India's cyber censorship law amid the NEET (UG) re-examination to prevent paper leak risks
Opportunity
India’s Defence Sector
For decades, India was one of the world’s largest arms importers. That story is changing fast and it is creating one of the most compelling investment opportunities in Indian markets right now.
India’s defence production crossed ₹1.78 lakh crore (approx. €19.5 billion) in FY26, up 15.6% from the previous year and more than 110% higher than just five years ago. This isn’t just a government statistic, it is visible in the stock market. The Nifty India Defence Index surged nearly 9% in just five trading sessions between June 13–19, with companies like HAL, BEL, Bharat Dynamics, Aequs and Zen Technologies leading the rally.
What is driving this boom?
Three forces are working together:
🏛️ Government spending: India’s Defence Ministry received ₹7.85 lakh crore in the Union Budget FY27, a 15% year-on-year increase, with 75% earmarked for indigenous procurement.
🌍 Surging exports: India’s defence exports hit ₹38,424 crore in FY26, with the government targeting ₹50,000 crore by FY29. Deals with Armenia, the Philippines and other nations are already signed.
🔓 FDI liberalisation: In January 2026, India raised the automatic FDI route limit in defence to 74%, making it easier for foreign firms to co-invest and co-produce with Indian manufacturers.
📊 Instruments to Consider
ETFs (Exchange Traded Funds)
Motilal Oswal Nifty India Defence ETF
Groww Nifty India Defence ETF
Mirae Asset Nifty India Defence ETF
Index Funds
Aditya Birla Sun Life Nifty India Defence Index Fund
Motilal Oswal Nifty India Defence Index Fund
HDFC Nifty India Defence Index Fund
Active Mutual Funds
HDFC Defence Fund
Invesco India PSU Equity Fund (defence + PSU blend)
ETF Fund of Funds (FoF) (for those who prefer MF route over Demat)
Groww Nifty India Defence ETF FoF
Key Stocks Within These Funds
Hindustan Aeronautics Limited (HAL), Bharat Electronics Limited (BEL), Bharat Dynamics Limited (BDL), Solar Industries India, Mazagon Dock Shipbuilders, Data Patterns (India), Astra Microwave Products, Zen Technologies
⚠️ Defence is a high-risk, thematic sector. A 15–20% portfolio allocation is considered prudent. These are not buy/sell recommendations, please consult your financial advisor before investing.
Until Next Sunday…
Conclusion
This Sunday, June 21, millions of people across the world, including hundreds gathering in Hamburg and Munich will roll out their yoga mats to mark the 12th International Day of Yoga, this year themed "Yoga for Healthy Ageing." It is a small but telling reminder that India's influence in Germany is not limited to trade flows and defence contracts, it shows up in parks, community halls, and city squares too.
See you next Sunday,
Jimit Patel