India’s defence stocks witnessed a sharp correction on Tuesday, June 24, following reports of a ceasefire announcement between Israel and Iran by US President Donald Trump. Although both nations are yet to confirm the ceasefire officially, the statement prompted heavy profit booking across defence counters.
Shares of Hindustan Aeronautics Ltd (HAL) dropped 2%, while Garden Reach Shipbuilders & Engineers (GRSE) plunged 6% to become one of the top laggards among defence scrips. Mazagon Dock Shipbuilders fell 2% and Bharat Dynamics Ltd (BDL) slipped 4%, reversing recent gains seen in the sector.
The broader market also opened on a subdued note and extended losses throughout Monday’s session. The BSE Sensex dropped 511.38 points or 0.62% to settle at 81,896.79, while the NSE Nifty50 slipped 140.50 points or 0.56% to end at 24,971.90.
Mishra Dhatu Nigam was another notable loser, plunging 5% after gaining 15% over the past month. Cochin Shipyard and Astra Microwave, which had rallied 20% and 10% respectively in recent sessions, also gave up some ground, sliding 2% and 4% each.
Analysts attribute the correction to traders locking in profits amid geopolitical developments. Brokerage firm Nirmal Bang, which has maintained a bullish stance on defence stocks due to indigenisation efforts and robust order books, reaffirmed Solar Industries, HAL, BDL, BEML, and Data Patterns as its top picks.
