Defence stocks tumble on profit-booking; Bharat Dynamics, HAL, others plunge up to 6%

Despite the broader sell-off in the defence sector, Paras Defence stock bucked the trend to trade with gains of around 2 percent.

DefeDefence stocks tumbled in trade on June 19 as investors engaged in profit booking after a relentless rally in recent trading sessions. Bharat Dynamics saw its shares fall over 5 percent, while Hindustan Aeronautics (HAL) and Bharat Electronics (BEL) experienced declines of up to 5 percent.

Defence stocks have been on a roll since June 5 as the Bharatiya Janata Party (BJP) secured sufficient support from key allies to form a coalition government, ensuring Modi’s return to power for a third consecutive term.

The Modi government has focused on defence sector by increasing funding, expanding defence budgets, and rising defence exports. Investors, buoyed by the prospects of policy continuity and ongoing economic reforms, poured money in the sector and are booking the profits now.

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The recent wave of optimism came from Defence Minister Rajnath Singh's agenda to increase defence exports in the times to come. While assuming charge of the Defence Ministry for a second tenure, Rajnath Singh set an ambitious target to export over Rs 50,000 crore worth of defence equipment by 2028-2029.

Defence shipbuilding stocks such as Mazagon Dock Shipbuilders, Cochin Shipyard, and Garden Reach Shipbuilders & Engineers also fell in the range of 3-5 percent intraday.

Other defence stocks, including Astra Microwave Products, MTAR Technologies, ideaForge Technology, Zen Technologies, Avantel, PTC Industries, Solar Industries India, and Walchandnagar Industries, fell up to 5.5 percent.

Despite the broader sell-off in the sector, Paras Defence stock bucked the trend to trade with gains of around 2 percent.

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