The shares of defence companies dropped on August 19 as expectations of a ceasefire between Russia and Ukraine increased after US President Donald Trump met Volodymyr Zelenskyy in the White House.
The sharp fall in the share prices pushed the Nifty India Defence index down nearly a percent to hover around 7,742 in the afternoon.
Trump hosted Ukraine's President Zelenskyy and a group of European allies at the White House, following his meeting with Russian President Vladimir Putin on Friday in Alaska. In a social media post late on Monday, Trump said he had called the Russian leader and begun arranging a meeting between Putin and Zelenskyy, which was to be followed by a trilateral summit among the three presidents.
Trump told reporters in the Oval Office that he liked the concept of a ceasefire but the two sides could work on a peace deal while the fighting continued. "I wish they could stop, I'd like them to stop," he said.
The possibility of easing global geopolitical tensions may have impacted the Indian defence stocks, which have seen a massive decline from record peaks amid concerns over stretched valuations and lack of fresh triggers.
Bharat Dynamics (BDL) shares dropped nearly 3 percent to trade at Rs 1,559 apiece. Data Patterns shares followed, dropping more than 2 percent. Solar Industries, Garden Reach Shipbuilders and Engineers (GRSE) and Hindustan Aeronautics (HAL) shares declined more than 1 percent each.
Bharat Electronics (BEL), Cochin Shipyard and Mazagon Dock Shipbuilders shares were hovering in the red with marginal losses. Bucking the trend, BEML and Paras Defence shares were trading in the green with marginal gains.
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