Bengaluru, June 26 -- Several defence stocks are in focus after NATO allies agreed to hike defence spending by 5 percent from the earlier guided 2 percent. In this article, we will dive deeper into what this means to Indian defence companies.

In a statement, NATO cited that nations have committed to dedicating 3.5 percent of GDP to core defence, to include personnel and weaponry, plus 1.5 percent to broader defence requirements, such as cyber security, protecting pipelines, and improving roads and bridges to military standards.

This move opens the space for Indian defence companies that export their products massively to these nations. Companies like Sika Interplant, Data Patterns, Zen Technologies, Paras Defence, Ideaforge, etc saw the...