$924.7B
US Defence Budget ’26
On January 3, 2026, the United States invaded Venezuela and captured President Nicolás Maduro. Within hours, Lockheed Martin stock rose 2%, Northrop Grumman jumped 4%, German defence companies Rheinmetall and Hensoldt surged 8%, and Japanese defence contractor Mitsubishi Heavy Industries climbed 8%. An entire sector moved billions of dollars in a single morning because of a geopolitical event most people saw first on X.
I watched it happen from my phone during a morning commute in Delhi. By the time I could think about opening a trading account, the initial spike was over. Three months later, when CoinDCX launched US Futures and Palantir was listed, I finally had a tool to trade these moves.
Foundation: How to Trade US Stock Futures from India
Why US defence stocks matter for Indian investors
The US FY2026 National Defense Authorization Act allocates $924.7 billion. Trump proposed $1.5 trillion for FY2027 — a $500 billion increase in a single year. Globally, defence spending is projected at $2.6 trillion in 2026, up 8.1%.
NATO countries are under pressure to hit 3% of GDP. Germany committed €100 billion in a special defence fund. Japan is doubling its military budget. The Iran conflict, Russia-Ukraine weapon restocking ($50B+ in US military aid), and Taiwan Strait tensions are all driving spending.
The Golden Dome project — a homeland missile defence shield — has $25 billion initial funding with $175 billion total programme costs. This alone could sustain multiple contractors for a decade.
For Indian investors: Lockheed Martin has a $179 billion backlog. RTX has $251 billion. These represent years of guaranteed government revenue. That predictability makes defence stocks a genuine diversifier against Indian portfolios concentrated in IT and banking.
The four defence stocks — deep dive
Palantir (PLTR) — The AI-defence hybrid, on CoinDCX
Stock: $142. Market cap: $340B (most valuable defence stock). Revenue growth: 70% YoY. Operating margin: 43%. Forward P/E: 114x. Michael Burry is actively shorting it.
What Palantir does: AI-powered data analytics for the CIA, NSA, and US military (Gotham platform), enterprises (Foundry), and the newer AIP platform driving explosive adoption. The DoD FY2026 budget allocates $13B to autonomy and AI — Palantir’s core territory.
The 114x P/E is the risk. At $340B market cap on ~$5.6B trailing revenue, Palantir trades at 60x revenue. Lockheed trades at 2x. Any quarter of sub-50% growth, a contract loss, or a growth-to-value rotation could trigger 30-50% decline. Palantir dropped from $29 to $6 in 2022.
On CoinDCX: 2-3x leverage max, 10% of wallet, 6-8% stop-loss. I’ve gone long on Trump policy events and short when 114x felt unsustainable.
Full AI stocks guide: Buy AI Stocks from India — NVIDIA, Palantir, AMD
RTX Corporation — The missile and engine giant
- Stock: $200
- Market cap: $285B
- Backlog: $251B (3.5 years of revenue)
- Up 40% YTD 2026
- Morgan Stanley top aerospace pick with $235 target
- Dividend: 2.1%
The Pentagon’s weapon stockpile depletion — Patriot batteries to Ukraine, munitions to Israel, systems for the Iran conflict — needs restocking. RTX makes Patriot missiles, Tomahawks, SM-3 interceptors. The restocking cycle alone could generate tens of billions over 3-5 years.
Pratt & Whitney engines power the Airbus A220, A320neo, and F-35. Every new aircraft delivery generates years of aftermarket revenue. Management guides 5-6% organic growth with expanding margins.
NOT on CoinDCX. Buy on Vested/INDmoney. This is a hold-for-5-years stock: dividend yield + backlog visibility + reasonable 22x P/E. RTX Q1 earnings: April 21, 2026.
Lockheed Martin (LMT) — The F-35 behemoth
- Stock: $610
- Market cap: $140B
- Backlog: $179B
- Revenue grew from $17.96B to $20.33B over four quarters
- EPS est. $22.25
- Dividend: $3.45/quarter (2.78%)
- Forward P/E:17x.
The F-35 programme has lifetime costs exceeding $1.7T. Lockheed is also the lead on THAAD, Aegis, Black Hawk helicopters, and the Orion spacecraft (Artemis lunar programme). The “Rapid Fielding Center” accelerates prototyping-to-production for new weapons.
65% of analysts rate Hold (not Buy) — this is priced for steady returns, not explosive growth. Truist upgraded to Buy with $605 target. For Indian investors on Vested: the 2.78% dividend yield beats post-tax Indian FD rates.
Northrop Grumman (NOC) — The stealth bomber maker
- Stock: $703
- Market cap: $100B
- Morgan Stanley target: $765
- Builds the B-21 Raider stealth bomber entering production now
- Sentinel ICBM programme
- The strongest tie to America’s nuclear triad.
The Golden Dome contract ($175B total) could add 20-30% to Northrop’s backlog overnight when awarded. Expected late 2026 or 2027. Highest-conviction play on that specific programme. NOT on CoinDCX.
How Indian investors access each defence stock
| Stock | Price | P/E | Backlog | Dividend | CoinDCX | Vested |
|---|---|---|---|---|---|---|
| Palantir (PLTR) | ~$142 | 114x | N/A | None | ✔ Yes | ✔ Yes |
| RTX Corp | ~$200 | ~22x | $251B | ~2.1% | ✘ No | ✔ Yes |
| Lockheed Martin | ~$610 | ~17x | $179B | ~2.8% | ✘ No | ✔ Yes |
| Northrop Grumman | ~$703 | ~24x | Large | ~1.6% | ✘ No | ✔ Yes |
| General Dynamics | ~$280 | ~23x | Large | ~2.1% | ✘ No | ✔ Yes |
Prices approximate as of April 2026. Palantir is the only defence stock available on CoinDCX. All stocks available on Vested and INDmoney via LRS.
CoinDCX for Palantir: leverage, short selling, 24/7, earnings plays. Vested/INDmoney for everything else: fractional shares, dividends, multi-year holds. Defence ETFs (ITA): $15.1B assets, 41 holdings, 0.38% expense ratio, 17.4% annualised returns over the past decade.
Comparisons: CoinDCX vs. Vested | CoinDCX vs. INDmoney
The India angle — why this matters domestically
India is the world’s largest arms importer (9.8% of global imports, SIPRI data). The US share of Indian imports jumped from 11% (2014-18) to 65% in recent procurement. India bought C-130J (Lockheed), P-8I Poseidon (Boeing), Apache/Chinook (Boeing), MH-60R (Lockheed/Sikorsky).
The INDUS-X initiative deepens defence procurement ties. Every major US contractor has India operations. When you buy Lockheed Martin stock, you’re partly buying a company selling to your own government.
Defence stocks in a recession — why this sector is different
2008 financial crisis: S&P 500 dropped 37%. Lockheed Martin dropped 18% — roughly half. 2020 COVID: defence recovered faster than the market. Logic: governments don’t stop buying missiles during recessions. Budgets are set 5-10 years in advance. Revenue visibility is higher than virtually any other sector.
For Indian portfolios concentrated in cyclical sectors (IT, banking, consumers), US defence stocks provide diversification against exactly the scenarios where Indian holdings underperform.
Risks most guides skip
⚠️ Defence Stock Risks
Defence budgets can be cut (2013 sequestration reduced spending ~$50B/year). Programme cancellations hit individual contractors hard. Peace resolutions reduce urgency for spending. Palantir at 114x P/E carries extreme valuation risk. ESG-driven institutional selling creates structural headwinds. Defence stocks are recession-resistant, not recession-proof.
Budget sequestration (2013) reduced spending ~$50B/year for several years. Programme cancellations hit prime contractors 10-20%. Peace dividends (1990s post-Cold War) caused defence underperformance for years. Palantir’s 114x P/E embeds years of perfection. ESG-driven institutional selling creates structural headwinds.
Tax treatment
CoinDCX (Palantir): speculative income at slab rate. No dividends, no US withholding. No Schedule FA.
Vested/INDmoney (RTX, LMT, NOC, GD): STCG at slab (under 24 months). LTCG at 20% with indexation (over 24 months). Dividends subject to 25% US withholding (DTAA), creditable via Foreign Tax Credit. Must declare in Schedule FA.
Catalysts I’m monitoring in 2026
- Iran conflict escalation → missile defence demand (RTX Patriot, Lockheed THAAD).
- Taiwan developments → naval/aircraft spending (GD, Lockheed).
- Golden Dome contract award → Northrop or Lockheed 15-20% pop.
- FY2027 budget hearings → programme-specific allocations.
- RTX Q1 earnings: April 21. Lockheed Q1 earnings: late April.
My defence stock portfolio from India
CoinDCX (Palantir): Active trades around defence budget announcements and earnings. 10% of wallet max, 2-3x leverage. Long on Trump endorsement (+5% same day). Short at $150 when 114x felt unsustainable (caught 4% dip).
Vested (RTX): Largest defence position. Bought at $180 in January 2026. Up ~11% plus dividends. $251B backlog gives confidence for 3-5 year hold.
Vested (Lockheed Martin): Smaller position. Bought at $550 in late 2025. Up ~11%. F-35 programme gives decades of guaranteed revenue. 2.78% yield.
Not holding yet: Northrop (waiting for Golden Dome clarity) and General Dynamics (evaluating — naval shipbuilding timelines are very long).
Related: Buy NVIDIA from India | Buy Apple, Google & Tesla | Buy US Tech Stocks Using ₹500
FAQs
How can I buy US defence stocks from India?
Two routes. Palantir (PLTR) is on CoinDCX US Futures (₹100 min, leverage, short selling, INR). RTX, Lockheed Martin, Northrop Grumman, General Dynamics are on Vested/INDmoney (fractional from $1, LRS). Defence ETFs (ITA) also on Vested.
Which US defence stocks can I buy on CoinDCX?
Currently only Palantir (PLTR). RTX, Lockheed, Northrop, GD, Boeing are NOT on CoinDCX. Use Vested or INDmoney for these.
Is Palantir a defence stock?
Yes. Gotham platform serves CIA, NSA, US military. ~55% of revenue from government contracts. Also an AI/enterprise software company.
What is the minimum to buy US defence stocks from India?
₹100 on CoinDCX for Palantir. $1 (~₹85) on Vested/INDmoney for RTX, Lockheed, etc. Defence ETFs also available as fractional shares.
Why are US defence stocks rising in 2026?
$924.7B US budget. $1.5T proposed for FY2027. Iran conflict. Russia-Ukraine restocking. Golden Dome ($175B programme). Global spend +8.1% to $2.6T.
Do US defence stocks pay dividends?
RTX ~2.1%, Lockheed ~2.8%, Northrop ~1.6%, GD ~2.1%. Palantir does not. Indian investors face 25% US withholding (DTAA), creditable against Indian tax.
💡 The Defence Stock Framework for Indian Investors
Use CoinDCX for Palantir — the only defence stock with leverage, short selling, and 24/7 access. Use Vested/INDmoney for RTX, Lockheed, Northrop — these are buy-and-hold dividend growers with multi-year backlogs. Defence stocks are recession-resistant diversifiers for Indian portfolios concentrated in IT and banking. The $924.7B US budget and $1.5T proposed for FY2027 create a structural tailwind that could last a decade.
Trade Palantir · Invest in RTX & Lockheed
CoinDCX for active Palantir trading · Vested for long-term defence holds
Bottom line
US defence stocks are unlike anything else available to Indian investors. Multi-year backlogs. Dividend yields that beat Indian FDs after tax. Recession resistance. And a structural spending tailwind — $924.7B today, $1.5T proposed — that could sustain this sector for a decade.
Palantir on CoinDCX for tactical trades. RTX and Lockheed on Vested for long-term holds. The tactical feeds the strategic. RTX earnings April 21. Fund your accounts before then.
Read More in the Series
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