Shares of defence companies fell up to 3% on October 13 amid easing Middle East tensions. At 2:05 pm on October 13, Nifty India Defence index was trading 1.1% lower with Midhani, Data Patterns leading the losses by falling 2.8% and 2.3%, respectively.
The fall on October 13 marks the fourth fall for the sectoral index in five sessions.
The fall in Indian defence stocks tracks the fall in Stoxx Europe Aerospace and Defense index, which was trading 0.5% lower on October 13. The index fell 1.9% on October 10. The easing tensions could be a negative for defence shares as they tend to perform better when there is strife.
Meanwhile, the Israeli military said on October 13 that the remaining 13 hostages freed by Hamas are now in Red Cross custody in the Gaza Strip.
In the first round of releases, seven hostages were handed over to Israeli forces in Gaza by the Red Cross. The transfer marked the start of the multi-phase operation to return hostages held by Hamas under the Gaza ceasefire deal.
These individuals are part of the group of 20 living hostages expected to return home today, under the first phase of the US-brokered ceasefire agreement. In exchange, nearly 2,000 Palestinian prisoners and detainees held in Israeli jails are also slated for release.
US President Donald Trump is currently in Israel and met Israeli Prime Minister Benjamin Netanyahu.
He was also welcomed into the Knesset by the parliament’s speaker. The last US president to speak at the Knesset was George W. Bush in 2008.
The other laggards on the sectoral index were Zen Technologies, Bharat Dynamics, Hindustan Aeronautics, which fell 2.1%, 2% and 1.8%, respectively.
On October 13, Egypt is hosting a major international peace summit in the Red Sea resort city of Sharm el-Sheikh. Co-chaired by Egyptian President Abdel Fattah al-Sisi and Trump, the gathering is being framed as a critical milestone in efforts to end the two-year-long war in Gaza and usher in a new phase of regional peace.
According to the Egyptian presidency, the goal is “to end the war in the Gaza Strip, enhance efforts to achieve peace and stability in the Middle East, and usher in a new era of regional security and stability”. The summit comes just days after the Israeli cabinet approved the first phase of Trump’s 20-point peace and hostage deal, following three days of indirect negotiations in Cairo.
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