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BEL, HAL to BDL: Defence stocks surge up to 9%. Is the US-Iran conflict driving this rally?

Valuations for broader public sector enterprises remain attractive, with the CPSE index trading at a P/E of 14 compared to 52 for the pure defence index, even after factoring in the latter’s relatively stronger growth outlook, said Ashwini Shami, President and Chief Portfolio Manager, OmniScience Capital.